Woodside greenlights Louisiana LNG project, first LNG production anticipated in 2029

Woodside has announced a final investment decision to develop the Louisiana LNG (liquefied natural gas) project, with first LNG production anticipated in 2029.

The Louisiana LNG project comprises three trains with a total capacity of 16.5 million tonnes per annum (mtpa).

It will enable Woodside to supply approximately 24mtpa from its international LNG portfolio in the 2030s, accounting for more than 5% of the worldwide LNG supply.

The facility also has the potential for further expansion, with two additional LNG trains, and is fully permitted for a total capacity of 27.6mtpa.

Woodside expects the Louisiana LNG project to generate substantial cash flow and create long-term value for its shareholders.

The project is projected to deliver an internal rate of return above 13% and a payback period of seven years, surpassing Woodside's capital allocation benchmarks.

At full capacity, the project is expected to yield around $2bn (A$3.12bn) of annual net operating cash in the 2030s.

It will contribute to Woodside's target of generating more than $8bn of annual net operating cash from its global portfolio in the same period.

Woodside CEO Meg O’Neill said: “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.

“We have secured quality partners and are now ready to take a final investment decision. This decision is another demonstration of Woodside’s disciplined investment approach, with the project delivering returns that exceed our capital allocation framework.”

The forecasted total capital expenditure (capex) for the Louisiana LNG project, including pipeline and management reserve, is estimated at $17.5bn.

Woodside's share of the forecasted total capex amounts to $11.8bn.

Stonepeak, an investor in Louisiana LNG Infrastructure, will contribute $5.7bn towards the capex on an expedited basis, covering 75% of the costs in 2025 and 2026.

In a related development, Woodside recently secured supply agreements with Uniper through Woodside Energy Trading Singapore.

The deal includes the supply of 1mtpa of LNG from the Louisiana LNG project and up to 1mtpa from its global portfolio.

"Woodside greenlights Louisiana LNG project, first LNG production anticipated in 2029" was originally created and published by Offshore Technology, a GlobalData owned brand.