Australian energy company Woodside has reached a final investment decision (FID) on its three-train Louisiana LNG facility, opening the prospect of production by 2029.
Once fully operational, Louisiana LNG will have the capacity to produce 16.5 million tonnes of LNG annually. This will increase Woodside’s global LNG production to around 25 million tonnes annually, so it is a massive project for the company.
Woodside acquired the project through its $1.2bn purchase of natural gas firm Tellurian and its Driftwood LNG project. Woodside renamed it Louisiana LNG.
Woodside expects Louisiana LNG to generate around $2bn a year in net operating cash in the 2030s, when running at full capacity.
Meg O’Neill described the confirmed investment as a “historic moment” for the company.
“As the largest single foreign direct investment in Louisiana’s history, Louisiana LNG will be the first greenfield US LNG project to go to FID since July 2023.”
The total expected cost for the LNG project, pipeline, and reserves is $17.5bn
New York-based investment firm Stonepeak will invest $5.7bn, covering 75% of the spending in 2025 and 2026. Woodside is responsible for the remaining $11.8bn.
Earlier this month, Stonepeak acquired a 40% interest in Louisiana LNG.
