Woodside has entered into a binding agreement with Stonepeak, a global investment firm specialising in infrastructure and real assets, for the sale of a 40 percent equity interest in Louisiana LNG Infrastructure LLC. This strategic partnership validates the project’s quality and attractiveness, while significantly reducing Woodside’s capital expenditure profile as the company moves towards a final investment decision.
Under the agreement, Stonepeak will contribute $5.7 billion toward the capital expenditure required for the foundation development of Louisiana LNG, with an accelerated investment schedule that will cover 75 percent of expected capex in both 2025 and 2026. This upfront contribution enhances project economics and strengthens Woodside’s cash flow position ahead of revenue generation from its Scarborough Energy Project in Australia. The remaining capital will be deployed in later stages of the project.
Strategic Benefits and Accelerated Timeline
Welcoming Stonepeak to the project, Woodside CEO Meg O’Neill emphasised the firm’s established record in U.S. gas and LNG infrastructure investments, noting its involvement across LNG facilities, carriers, and floating storage and regasification units.
“This transaction confirms Louisiana LNG’s position as a globally attractive investment with the potential to deliver long-term value to shareholders,” O’Neill stated. “It is the result of a highly competitive process, significantly reducing our capex exposure and further enhancing the project’s return profile. The accelerated capital contribution strengthens Woodside’s capacity for near-term shareholder returns.”
She added that the agreement, alongside a lump-sum turnkey EPC contract with Bechtel and existing regulatory permits, provides a strong foundation to progress towards FID with confidence.
Further Equity Sell-Down Anticipated
Woodside also confirmed continued engagement with other potential partners, targeting an overall equity sell-down of approximately 50 percent for the integrated Louisiana LNG project. The model mirrors the company’s successful partnership approach in its Scarborough and Pluto Train 2 development in Australia.
Stonepeak’s Perspective and Role
Stonepeak’s senior managing director and head of U.S. Private Equity, James Wyper, expressed strong confidence in the project, citing its importance to the future of U.S. LNG exports. “Louisiana LNG represents a compelling investment opportunity in a newbuild export facility with an attractive risk-reward profile and proven partners in Bechtel and Woodside,” he said.
Transaction Structure and Investment Framework
Under the agreement, Stonepeak will hold 40 percent equity in Louisiana LNG Infrastructure LLC (InfraCo), with Woodside retaining 60 percent via its holding entity Louisiana LNG LLC (HoldCo). InfraCo will oversee construction of the liquefaction infrastructure and common-user facilities, and will be operated by Woodside. The EPC contract with Bechtel will be held by InfraCo, while a long-term liquefaction tolling agreement between InfraCo and HoldCo supports the investment.
Stonepeak’s $5.7 billion capital contribution is front-loaded, meaning its actual funding will be lower than its nominal 40 percent stake due to time value adjustments. HoldCo will be responsible for any cost overruns, providing certainty for Stonepeak while allowing Woodside to benefit from capital efficiencies.
The estimated forward cost for the project’s foundation development, as of December 2024, remains between $900–960 per tonne. This includes EPC costs, completion incentives, owner’s costs, allowances, and contingencies—but excludes pipeline, HoldCo costs, and related contingency.
Next Steps
The transaction is subject to customary conditions precedent, including FID and regulatory approvals. The effective date is set for 1 January 2025, with financial close targeted for Q2 2025. Upon completion, Stonepeak is expected to make an initial payment of approximately $2 billion to cover its share of capital expenditure incurred since the effective date.
Woodside is being advised by RBC Capital Markets and Evercore, with legal counsel provided by Norton Rose Fulbright.
For more information visit www.woodside.com
