Woodside Energy Explores Stake Sale in Louisiana LNG Project

Woodside Energy (WDS), the Australian oil and gas giant, is in talks with potential partners to sell a 50% stake in its Louisiana LNG project, according to a Reuters report. The project, located in Calcasieu Parish, Louisiana, has a total permitted capacity of 27.6 million tonnes per annum (Mtpa) and is expected to be a significant player in the global LNG market.

The Louisiana LNG project is a high-quality, scalable development opportunity that is fully permitted and has completed front-end engineering design. Site construction has already commenced, with Bechtel serving as the engineering, procurement, and construction contractor. Woodside is targeting final investment decision (FID) readiness for Phase 1 from Q1 2025.



Woodside's decision to explore a stake sale in the Louisiana LNG project aligns with its long-term investment objectives. By selling a 50% stake, Woodside can reduce its financial exposure, mitigate risks, and allocate capital more efficiently across its portfolio of projects. Additionally, the stake sale could help Woodside attract a strategic partner with complementary strengths, such as access to new markets, technological expertise, or operational synergies.

Potential partners for the stake sale include Japan's JERA and Tokyo Gas, as well as Saudi Aramco-backed MidOcean Energy. Each of these companies brings unique value to the table, including market access, trading expertise, and long-term offtake agreements. By partnering with these companies, Woodside could enhance the project's financial viability and ensure a stable demand for the LNG produced at the Louisiana facility.



The proposed stake sale could have significant impacts on the project's timeline, financing, and overall development strategy. Selling a 50% stake in Phase 1 could potentially accelerate the FID process, improve financing by bringing in substantial capital and better financing terms, and enhance the overall development strategy by attracting a strategic partner with complementary strengths.

However, the exact impacts on the project's timeline and completion date remain uncertain. The Woodside spokesperson stated that the project is fully permitted with a US Federal Energy Regulatory Commission approval that goes until Q2 2029. The completion date has not been provided, and the stake sale might not significantly alter this timeline.

In conclusion, Woodside Energy's decision to explore a stake sale in its Louisiana LNG project is driven by strategic motivations that focus on risk mitigation, capital efficiency, market diversification, technical expertise, and alignment with long-term investment objectives. The proposed stake sale could have significant impacts on the project's timeline, financing, and overall development strategy, but the exact impacts on the project's timeline and completion date remain uncertain.