Woodside Energy to Sell 20% to 30% Stake in Louisiana LNG Project

Woodside Energy, the largest liquefied natural gas (LNG) exporter in Australia, has announced plans to sell an additional 20% to 30% stake in its Louisiana LNG project. This decision follows the project's final approval last week, which has sparked significant interest from various capital sources. The project, valued at $17.5 billion, has attracted multiple investors eager to participate in this substantial energy infrastructure initiative.

Liz Westcott, Woodside's Chief Operating Officer in Australia, revealed that the company aims to sell a portion of its wholly-owned controlling stake in the project. This strategy is designed to achieve a 50% equity target. Westcott stated, "Our goal is to sell 20% to 30% of the controlling company's shares. This will bring our target investment capital to around 50%."

The Louisiana LNG project, which received final approval last week, is expected to yield a 13% internal rate of return and a 7-year payback period. This optimistic outlook is supported by the U.S. government's backing of fossil fuels and the growing demand from Europe and Asia. The project is scheduled to deliver its first batch of natural gas by 2029 and is projected to generate $2 billion in annual net operating cash flow during the 2030s.

Previously, Woodside agreed to sell 40% of the project's infrastructure company to Stonepeak, a private equity firm, which will contribute $5.7 billion to the project's estimated capital costs. The planned 20% to 30% reduction in Woodside's stake aligns with analysts' expectations, who believe that further divestment is crucial for mitigating project risks and validating its value.

Westcott added that discussions with potential partners are ongoing, and interest in the project has surged since its approval. She emphasized, "We will remain patient to ensure we find the right partners, but we are also eager to move forward." This strategic move by Woodside reflects its commitment to optimizing its investment in the Louisiana LNG project while attracting additional capital to support its ambitious energy infrastructure goals.