Woodside approves Louisiana LNG development
Published by Emilie Grant,
Editorial Assistant
Tanks and Terminals,
Woodside has made a final investment decision (FID) to develop the three-train, 16.5 million tpy Louisiana LNG development. Woodside is targeting first LNG in 2029.
Development of Louisiana LNG will position Woodside as a global LNG powerhouse, enabling the company to deliver approximately 24 million tpy from its global LNG portfolio in the 2030s, and operating over 5% of global LNG supply.1 The development has expansion capacity for two additional LNG trains and is fully permitted for a total capacity of 27.6 million tpy.
Louisiana LNG represents a compelling investment that will deliver significant cash flow and create long-term value for Woodside shareholders. It exceeds Woodside’s capital allocation targets, delivering an internal rate of return (IRR) above 13% and a payback period of seven years.
At full capacity, the foundation project is expected to generate approximately US$2 billion of annual net operating cash in the 2030s. It will drive Woodside’s next chapter of value creation, giving the company’s global portfolio the potential to generate over US$8 billion of annual net operating cash in the 2030s.2
The forecast total capital expenditure for the LNG project, pipeline and management reserve is US$17.5 billion (100%).3 Stonepeak, as an investor in Louisiana LNG Infrastructure LLC, will provide $5.7 billion towards the expected capital expenditure for the LNG project on an accelerated basis, contributing 75% of capital expenditure in both 2025 and 2026.4 Woodside’s share of forecast total capital expenditure is $11.8 billion.
Woodside’s greenhouse gas (GHG) emissions reduction targets remain unchanged by the final investment decision on Louisiana LNG. The starting base for the emissions reduction target will not be adjusted as a result of the final investment decision.5
Woodside CEO Meg O’Neill said the final investment decision on Louisiana LNG was an 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."
“Louisiana LNG will support approximately 15 000 national jobs during construction. Woodside appreciates the support Louisiana LNG has received from both the US Federal and Louisiana State governments.”
Read the article online at: https://www.tanksterminals.com/storage-tanks/30042025/woodside-approves-louisiana-lng-development/
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