Woodside has announced the simultaneous signing and closing of a strategic transaction with Williams, a US natural gas infrastructure company, to drive forward the Louisiana LNG Project.
The agreement establishes an integrated investment partnership and marks a significant advancement in Woodside’s US energy strategy.
The transaction involves the sale of a 10 per cent interest in Louisiana LNG LLC (HoldCo) and an 80 per cent interest and operatorship of Driftwood Pipeline LLC (PipelineCo) to Williams for US$250 million, effective 1 January 2025.
Woodside received total proceeds of $378 million, inclusive of proportionate capital reimbursement.
The partnership brings together Woodside’s global LNG expertise and Williams’ extensive US infrastructure capabilities.
Williams will contribute approximately $1.9 billion in capital expenditure for its share of the LNG facility and pipeline and assume LNG offtake obligations for 10 per cent of produced volumes.
It will also utilise its Sequent Energy Management platform to develop and operate gas supply, sourcing, and optimisation for the Louisiana LNG project.
Woodside CEO Meg O’Neill said Williams’ entry underscored the strength and global relevance of the project.
“We are excited to have Williams join us as a strategic partner in Louisiana LNG given its leadership in US natural gas infrastructure and ability to add value and deliver operational benefits to enhance the project,” stated O’Niell.
“This is Williams’ first investment in LNG, and its participation in Louisiana LNG is a testament to the quality of the project.”
O’Neill said the collaboration between Woodside and Williams unites complementary expertise in LNG development, marketing, and natural gas infrastructure to position the partners to capture future global demand opportunities.
She added that with strong contracting progress across Louisiana LNG, support from infrastructure partner Stonepeak, and key project contributors including Bechtel, Baker Hughes, and Chart, Woodside remains on track to deliver first LNG in 2029 and drive long-term shareholder value.
Williams President and CEO Chad Zamarin said the transaction was key to the company’s long-term integrated strategy.
“This transaction marks an important step forward in Williams’ wellhead to water strategy – integrating upstream, midstream, marketing and LNG capabilities to deliver the cleanest, most reliable energy to global markets.
“We look forward to partnering with Woodside, and together, reinforcing and strengthening our collective roles as trusted providers of sustainable energy solutions that meet growing global demand.”
Under the agreement, Williams will hold 10 per cent of HoldCo, while Woodside retains the remaining 90 per cent.
HoldCo owns 60 per cent of Louisiana LNG Infrastructure LLC (InfraCo), with Stonepeak owning the remainder.
Williams will own 80 per cent of PipelineCo and manage the design, construction, and operation of the Line 200 pipeline.
The Sequent-led gas supply team will operationalise and optimise daily gas sourcing in line with HoldCo’s procurement strategy, with oversight from Woodside.
Williams’ LNG production share will total approximately 1.6 million tonnes per annum (Mtpa), comprising 1.5 Mtpa under a dedicated LNG supply and purchase agreement (SPA), plus benefits from 10 per cent of the existing 1.0 Mtpa SPA between Louisiana LNG and Uniper.
Woodside’s capital expenditure for the Louisiana LNG Project has been revised to $9.9 billion, down from $11.8 billion at the time of the final investment decision.
