Woodside has taken a final investment decision to proceed with the development of the Louisiana LNG project — a landmark three-train, 16.5 million tonnes per annum liquefied natural gas export facility, with first LNG targeted for 2029. This strategic move marks a defining moment for the company and positions it to deliver approximately 24 Mtpa from its global portfolio in the 2030s, equating to over five percent of global LNG supply.
The Louisiana LNG development, fully permitted for a total capacity of 27.6 Mtpa, has room for expansion with two additional LNG trains, reinforcing its long-term strategic value. The project represents the largest single foreign direct investment in Louisiana’s history and the first greenfield US LNG project to reach FID since July 2023.
Woodside CEO Meg O’Neill described the decision as “a game-changer,” stating:
“Louisiana LNG is 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 that plays to our strengths in project execution, operational excellence, marketing and customer relationships.”
The development is expected to generate significant financial value, delivering an internal rate of return (IRR) of over 13 percent and a payback period of seven years. At full capacity, it is forecast to produce approximately USD 2 billion in annual net operating cash flow in the 2030s, contributing to a potential total of over USD 8 billion annually from Woodside’s global portfolio in the same period.
The forecast total capital expenditure for the Louisiana LNG project, inclusive of pipeline and management reserve costs, is USD 17.5 billion. Woodside’s share amounts to USD 11.8 billion. Strategic partner Stonepeak, an investor in Louisiana LNG Infrastructure LLC, will contribute USD 5.7 billion of the capital, front-loading 75 percent of its share across 2025 and 2026.
The project benefits from several competitive advantages, including:
- Access to abundant, low-cost US gas resources.
- A lifespan exceeding 40 years.
- Connection to established interstate and intrastate gas networks.
- Robust marketing potential across both the Pacific and Atlantic Basins, enhancing Woodside’s presence in Asia while opening up opportunities in Europe.
Despite the scale of investment, Woodside’s greenhouse gas emissions reduction targets remain unchanged. The baseline for its emissions goals will not be adjusted due to the FID on Louisiana LNG.
O’Neill reaffirmed Woodside’s commitment to disciplined investment, noting the strong interest from potential strategic partners for equity sell-downs, in line with the approach used for Australia’s Scarborough Energy Project. She added:
“Louisiana LNG will support approximately 15,000 national jobs during construction, underscoring its significance to the US economy. We are grateful for the continued support from both the US Federal and Louisiana State governments.”
The final investment decision on Louisiana LNG marks a bold step in Woodside’s global expansion, driving the next chapter of growth and reinforcing its leadership in the evolving LNG landscape.
For more information visit www.woodside.com
