Woodside Energy Sells 40% Stake in Louisiana LNG Project to Stonepeak

In a significant move that underscores the growing interest in the U.S. liquefied natural gas (LNG) market, Australian energy giant Woodside Energy has sold a 40% stake in its Louisiana LNG project to Stonepeak, a global investment firm. The deal, announced on April 7, 2025, involves Stonepeak providing $5.7 billion in capital expenditure for the project, which represents 75% of the project's capital expenditure in both 2025 and 2026. This strategic partnership not only provides immediate financial relief for Woodside but also positions the Louisiana LNG project as a globally attractive investment set to deliver long-term value to shareholders.



The financial implications of this deal are substantial. By securing $5.7 billion from Stonepeak, Woodside significantly reduces its capital expenditure burden, freeing up resources for other strategic initiatives. This financial validation from a reputable investment firm like Stonepeak can attract other potential equity partners, enhancing the project's overall financial stability and reducing Woodside's financial risk. As Woodside CEO Meg O'Neill stated, "This transaction further confirms Louisiana LNG's position as a globally attractive investment set to deliver long-term value to our shareholders."

The strategic advantages of partnering with Stonepeak are multifaceted. Firstly, Stonepeak's expertise in investing in US gas and LNG infrastructure brings valuable industry knowledge and experience to the project. Stonepeak's senior managing director and head of US private equity, James Wyper, highlighted the project's compelling opportunity, stating, "The project represents a compelling opportunity to invest in a newbuild LNG export facility nearing FID approval with an attractive risk-reward profile and best-in-class partners in both Bechtel and Woodside to construct and operate the asset." This expertise can lead to more efficient project management, better risk assessment, and improved operational strategies, ultimately enhancing the project's timeline and operational efficiency.

Secondly, the partnership allows Woodside to accelerate its contribution to the project's capital expenditure in both 2025 and 2026. This acceleration can expedite the project's development, bringing it closer to the final investment decision (FID) and operational readiness. As Woodside noted, the transaction "significant reduces" its capital expenditure profit and represents a "material step" towards readiness for a final investment decision (FID). This acceleration can lead to faster project completion and earlier commencement of LNG exports, enhancing the project's overall efficiency and competitiveness in the US LNG export market.



The deal also provides validation of the project's quality and helps attract other potential equity partners. Woodside aims to continue advancing discussions with additional potential partners, targeting an equity sell-down of around 50% in the integrated project. This strategy will further reduce Woodside's financial exposure and risk, allowing the company to focus on other strategic initiatives.

In summary, the sale of a 40% stake in the Louisiana LNG project to Stonepeak not only provides immediate financial relief through reduced capital expenditure but also enhances Woodside's market position and readiness for future investment decisions. The partnership with Stonepeak brings significant financial support, industry expertise, and accelerated project development, all of which can positively influence the Louisiana LNG project's timeline and operational efficiency. As the global demand for LNG continues to grow, this strategic move positions Woodside Energy at the forefront of the US LNG export market, poised to deliver long-term value to its shareholders.