Fast Five: The lowdown on Louisiana LNG
Woodside’s newly announced Louisiana LNG partnership with Williams brings a world-class leader in US natural gas infrastructure into the fold, as we assemble a dream team of global partners to take the project forward.
The partnership with Williams includes the sale of a 10% interest in Louisiana LNG and an 80% interest and operatorship of the project’s permitted lateral pipeline for US$250 million, effective 1 January 2025.
Woodside CEO Meg O’Neill said there’s strong momentum behind the globally competitive project, which is “on track to deliver first LNG in 2029 and create long-term value for our shareholders”.
Here are five things to know about the Louisiana LNG project:
- Woodside’s partnership with Williams builds on our earlier 40% sell-down of Louisiana LNG infrastructure to New York-based Stonepeak, and our key contracting partners Bechtel, Baker Hughes and Chart. The project has also welcomed Uniper as its first long-term customer with a 13-year, one million tonnes per annum, LNG supply agreement.
The project complements Woodside’s established Australian LNG business, expanding our reach across both the Atlantic and Pacific Basins and enabling us to supply a broader range of global customers. The development of Louisiana LNG alongside our Scarborough Energy Project in Western Australia means we’re building a much larger LNG portfolio for the 2030s and beyond.
Louisiana LNG is surrounded by one of the deepest inventories of natural gas in the world, making it ideally placed as a hub for production and processing. With access to more than 1,200 trillion cubic feet, there are significant quantities of low-cost natural gas available today and well into the future. To put this size into perspective, our Scarborough Energy Project is developing natural gas resources of about 11 trillion cubic feet – so we’re talking about a resource base of more than 100 times the size of Scarborough.
The US$17.5 billion project will bring major economic benefits to the US, creating approximately 15,000 direct jobs during the construction phase and some 4,000 once operational. So far, nearly half a billion dollars has been spent with more than 130 Louisiana businesses, demonstrating Woodside’s commitment to supporting local content. Over its life, the project is expected to generate billions of dollars in revenue for local communities.
Louisiana LNG leverages best-in-class technology. With advanced features such as a flareless restart system and high-efficiency jet engine-style turbines, the project has the potential to reduce the average Scope 1 and 2 emissions intensity of Woodside’s portfolio.
Construction of Louisiana LNG is now 19% complete, with the foundation phase comprising three LNG trains. The project is on track to deliver first LNG in 2029.
There’s also opportunity for future growth, with expansion capacity for two additional trains and a total permitted capacity of 27.6 million tonnes per annum.
Find out more about the project here.
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