Woodside moves to become ‘global LNG powerhouse’ with $17.5B FID for Louisiana plant

Australia’s energy giant Woodside has made a final investment decision (FID) to develop its liquefied natural gas (LNG) project in the U.S. State of Louisiana.

Now that the FID has allowed the three-train, 16.5 million tonne per annum (mtpa) Louisiana LNG project to move forward, Woodside expects the development to enable it to become a global LNG powerhouse. The Australian firm describes this as the first greenfield U.S. LNG project sanctioned since the lifting of the LNG export pause in the U.S.

After the first LNG is achieved in 2029, the company hopes to deliver approximately 24 mtpa from its global LNG portfolio in the 2030s and operate over 5% of global LNG supply. Since the project startup coincides with the expected LNG supply shortfall, which is forecast to begin in 2030, the Australian major hopes to help meet this demand.

Woodside CEO Meg O’Neill said the FID on Louisiana LNG was a historic moment for the company. According to her, adding this project to Woodside’s established Australian LNG business provides her company with a balanced and resilient portfolio, combining long-life, flexible LNG assets with high-return oil assets.

O’Neill commented: “Louisiana LNG is a game-changer for Woodside, set to position our company as a global LNG powerhouse and enable us to deliver enduring shareholder returns. This world-class project is a compelling and de-risked investment. It leverages Woodside’s proven strengths in project execution, operational excellence, marketing and customer relationships to offer significant cash generation and drive long-term shareholder value.”

The forecast total capital expenditure for the LNG project, pipeline, and management reserve is $17.5 billion, encompassing $15.9 billion, or $960/tonne, for the plant, which includes EPC, owner’s cost, and contingency costs, and a $1.1 billion pipeline cost.

Stonepeak came on board the project earlier this month, providing $5.7 billion towards the expected capital expenditure for the LNG project on an accelerated basis. The firm will also contribute 75% of the capital expenditure in 2025 and 2026. Woodside’s share of the forecast total capital expenditure is $11.8 billion.

As explained by Woodside’s CEO, the project benefits from access to “abundant” low-cost gas resources in the United States, boasting a lifespan of over 40 years. It also has access to interstate and intrastate gas supply networks. The marketing opportunities Louisiana LNG offers across the Pacific and Atlantic Basins are said to complement Woodside’s established position in Asia. 

O’Neill says her company will be able to serve global customers even better and meet the growing energy demand. According to her, the supply can target strong and sustained demand for LNG expected in both Asia and Europe, as those markets pursue energy security and decarbonization aspirations. 

“As the largest single foreign direct investment in Louisiana’s history, Louisiana LNG will also be the first greenfield US LNG project to go to final investment decision since July 2023. Louisiana LNG will support approximately 15,000 national jobs during construction. Woodside appreciates the support Louisiana LNG has received from both the US Federal and Louisiana State governments,” concluded O’Neill.

The foundation project is anticipated to generate approximately $2 billion of annual net operating cash in the 2030s at full capacity. The Australian giant sees this as an entry to the next chapter of value creation, giving the company’s global portfolio the potential to generate over $8 billion of annual net operating cash in the 2030s. 

Based on the Australian giant’s latest presentation, pilings for Train 1 and LNG tanks are complete, with foundation work underway for the tanks. Trains 1-3 will have 5.5 mtpa each, with expansion potential for two additional trains totaling 11 mtpa. The project is fully permitted for a total capacity of 27.6 mtpa.

The plant will feature two large 235,000 cubic meter (cbm) LNG storage tanks to enable operational flexibility and two jetties with capacity for large LNG carriers (up to 216,000 cbm). A 37-mile, or approximately 60-kilometer, pipeline has also been permitted, Woodside said.

Bechtel is in charge of the engineering, procurement, and construction (EPC) portion of the project. The U.S. player inked a revised contract with Woodside in December 2024, with Baker Hughes winning a deal to supply gas technology equipment later that month.