Australian energy giant Woodside will push ahead with a $27 billion (US$17.5 billion) liquefied natural gas (LNG) project in Louisiana, United States.
Woodside shares rose 1.47 percent on the Australian Stock Exchange (ASX) to 20.66 each on April 29 in reaction to the news.
Woodside expects the project to produce about 16.5 million tonnes per annum (mtpa) of gas in 2029 and generate $2 billion of cash per year from the 2030s.
By the 2030s, Woodside hopes to produce 24 mtpa of gas from the project, contributing to 5 percent of total global LNG supply.
Woodside Chief Executive Officer Meg O'Neill described the news as a “historic moment” for the company.
“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,” she said.
“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.”
O'Neill said Woodside had secured quality partners and was now ready to take the final investment decision.
“Adding Louisiana LNG to our established Australian LNG business provides Woodside with a balanced and resilient portfolio, combining long-life, flexible LNG assets with high-return oil assets,” she said.
O'Neill pointed out that the project benefits from access to abundant low-cost gas resources in the United States and has an asset lifespan of more than 40 years.
“It also has access to well-established interstate and intrastate gas supply networks. The marketing opportunities Louisiana LNG offers across the Pacific and Atlantic Basins leverages Woodside’s proven LNG marketing capabilities and complements our established position in Asia,” she said.
This would position Woodside to even better serve global customers and meet growing energy demand.
“This supply can target strong and sustained demand for LNG expected in both Asia and Europe, as those markets pursue energy security and decarbonisation aspirations,” O'Neill said.
“We are pleased with the strong level of interest from potential strategic partners and are advancing discussions targeting further equity sell-downs.
Woodside Thanks US Government For Support
Woodside thanked both the Trump administration and the Louisiana state government for backing the project.“As the largest single foreign direct investment in Louisiana’s history, Louisiana LNG will also be the first greenfield U.S. LNG project to go to final investment decision since July 2023," O'Neill said.
Trump Expedites Energy Projects
Since coming to office, President Trump has made efforts to expedite the approval process for energy projects, including natural gas liquids.On his first day of office, he declared a national energy emergency to secure U.S. energy supply and instructed agencies to push ahead with projects.
“To facilitate the nation’s energy supply, agencies shall identify and use all relevant lawful emergency and other authorities available to them to expedite the completion of all authorized and appropriated infrastructure, energy, environmental, and natural resources projects that are within the identified authority of each of the secretaries to perform or to advance,” the executive order states.
In response to the national energy declaration, the U.S. Department of Interior has cut down energy permits from a multi-process to 28 days.
This applies to crude oil, natural gas, natural gas liquids, petroleum, coal, uranium, biofuels, and geothermal energy.
