Woodside Energy Expects to Bring Partners Onboard for Louisiana Liquefied Natural Gas Project by 2025
Woodside, an Australia-listed energy company, expects to bring in several partners for its Louisiana liquefied natural gas (LNG) development project by the time it gives the project the financial go-ahead in the first quarter of 2025. The company is seeking to sell a 50% stake in the project, which it fully owns after acquiring Tellurian Inc in October for $1.2 billion.
The U.S. Gulf Coast facility, when completed, could convert up to 27.7 million tons of LNG per annum. Woodside has held talks with U.S. natural gas producers, traditional LNG buyers, and infrastructure-focused investors, according to CEO Meg O’Neill. The announcements on new partners in the project are expected to be made “concurrent with the FID (final investment decision) at the latest.”
O’Neill stated that the goal is to assemble a “dream team” with each partner bringing a unique value proposition, such as an understanding of the onshore gas market, infrastructure capital, or LNG offtake and marketing expertise. She was unwilling to name specific companies engaged in talks, although Reuters reported last month that Woodside was in discussions with Tokyo Gas.
The project, which is expected to start production in 2028, is estimated to cost between $900 to $960 per ton of LNG after renegotiating the development contract with service company Bechtel. O’Neill expressed confidence that Woodside would be able to finance its share of the development costs from its own balance sheet, citing “comfortable” reserve levels. The company also plans to lock in natural gas supplies after finalizing the investment decision.
The project’s cost could be affected by inflationary pressures in the supply chain and labor market, O’Neill warned.