Woodside Energy is currently engaged in discussions with several potential partners to sell stakes in its Louisiana liquefied natural gas (LNG) project.

This strategic move comes as the company seeks to capitalise on the growing demand for US LNG, particularly in light of recent trade policies.

Among the potential buyers reportedly in talks with Woodside are Tokyo Gas, Japan’s JERA, and Saudi Aramco-backed MidOcean Energy.

Additionally, US pipeline operator Williams Companies has shown interest in the project.

However, when approached for comment, JERA, MidOcean Energy, Saudi Aramco, Tokyo Gas, and Williams Companies all declined or did not respond.

The stake sale is particularly timely, coinciding with US President Donald Trump’s push for trade partners to increase their purchases of US energy.

The Louisiana LNG project presents an opportunity for global buyers to diversify their supply base and potentially sidestep US tariffs by helping to narrow the trade deficit, a key focus of Trump’s trade policies.

Woodside is reportedly considering the sale of a 50 per cent stake in the first phase of the LNG export project, which carries an estimated cost of US$16 billion ($25.16 billion).

This initial phase is projected to produce 11 million tonnes per annum (mtpa) of LNG, with the entire project expected to reach a total output of 27.6 mtpa upon completion.

While Woodside has refrained from commenting on the specifics of the bidding process, the company has previously stated that the project is progressing as planned and has garnered significant interest.

In addition to seeking partners, Woodside is also in negotiations for higher gas contract prices, citing increased construction costs and lower development risks due to all necessary permits for the plant having been secured.

Woodside CEO Meg O’Neill has emphasised the company’s desire for clarity on partnering strategies before finalising investment decisions, with the aim of bringing partners into the Louisiana LNG project by March 2025.

The company is proposing liquefaction fees of US$2.70–2.90 per million British thermal units for 10 to 20-year contracts, slightly above current market rates.

It’s worth noting that Woodside acquired the Louisiana LNG project as part of its $1.2 billion purchase of Tellurian in October 2024.

This acquisition has positioned Woodside to potentially become a more significant player in the global LNG market, particularly in the Atlantic Basin.

As the energy landscape continues to evolve, Woodside’s strategic moves in the US LNG market could have far-reaching implications for both the company and the broader energy sector.

The outcome of these negotiations will be closely watched by industry observers and stakeholders alike.