Woodside secures supply deal for Louisiana LNG project

Woodside Energy’s Louisiana LNG project site. The company will buy up to 640 billion cubic feet of gas from a bp subsidiary.

Woodside has signed a long-term agreement with bp to source natural gas for its proposed Louisiana LNG project, marking a key milestone as the Australian energy major continues to advance the U.S. Gulf Coast export terminal.

The agreement commits bp to deliver up to 640 billion cubic feet of gas to the project’s gas marketing subsidiary, Louisiana LNG Gas Management LLC (GasCo), starting in 2029. Gas will be ultimately delivered to Line 200, one of several pipelines serving the terminal’s strategically connected site.

“This is an important step for the project,” said Woodside CEO Meg O’Neill. “Securing this gas supply agreement is a milestone as we build a diversified portfolio of feedgas underpinned by extensive interconnectivity to multiple producing basins and interconnecting pipelines.”

The Louisiana LNG terminal is among Woodside’s most significant growth initiatives and is expected to support its goal of generating long-term shareholder value through increased LNG cash flows. The project is designed with access to a wide range of U.S. gas supply sources, including the Haynesville and Permian basins, via interconnects with major pipeline systems in Louisiana.

The company has previously stated that Louisiana LNG will offer up to 13 million tonnes per annum of export capacity in its initial phase, with the potential for future expansion.

The announcement builds on Woodside’s broader strategy to establish a meaningful LNG footprint in North America. Last week, O’Neill said the Louisiana LNG project would offer competitive economics and flexibility, while enabling the company to meet growing customer demand for lower-carbon energy.

“This is a compelling investment,” she reiterated. “By drawing upon bp’s experience with MiQ certificates, we can access verifiably low methane intensity molecules. This supports Woodside’s goals as a member in the UN Environment Programme’s OGMP 2.0 initiative.”

The OGMP 2.0 framework sets standards for methane emissions measurement, reporting and reduction. Woodside and bp are both members of the initiative, which promotes transparency and accountability in methane performance across the natural gas value chain.

bp’s U.S. onshore business, bpx energy, is one of the leading producers in the Haynesville, Eagle Ford and Permian basins. Headquartered in Denver, bpx was the first major U.S. onshore producer to certify 100% of its gas production through MiQ, a third-party methane emissions certification standard.

The gas for Louisiana LNG will be marketed by bp and sourced from its bpx operations. “This agreement underscores the growing importance of certified natural gas in global LNG markets,” bp said in a statement.

GasCo, the Woodside affiliate established to manage feedgas procurement, will be responsible for implementing the sourcing strategy to support terminal operations.

Woodside has described Louisiana LNG as a cornerstone of its international expansion. While Australia remains the company’s base, with legacy operations including the North West Shelf and Pluto LNG, the U.S. project marks a strategic shift toward growth in the Atlantic Basin.

O’Neill has emphasized that proximity to buyers in Europe and the Americas makes Louisiana LNG a valuable asset in Woodside’s global portfolio, particularly as the company seeks to balance energy security and decarbonization priorities.