Woodside Energy Group has entered into a binding agreement with Stonepeak, a major global investment firm specialising in infrastructure and real assets, for the sale of a 40 per cent interest in Louisiana LNG Infrastructure LLC.
The transaction, valued at $5.7 billion, is a significant milestone for the under-construction Louisiana LNG export terminal in Calcasieu Parish and marks a major step toward a final investment decision (FID) on the project.
Under the agreement, Stonepeak will provide US$5.7 billion towards the expected capital expenditure for the foundation development of Louisiana LNG, with an accelerated capital injection covering 75 per cent of project capex in both 2025 and 2026.
This structure substantially reduces Woodside’s near-term capital requirements, enhances project economics, and improves the company’s cash flow profile ahead of anticipated revenues from its Scarborough Energy Project in Australia.
The remainder of Stonepeak’s committed capital will be funded in subsequent years.
The transaction is structured so that Stonepeak’s total capital contribution is lower than its nominal 40 per cent equity interest due to the time value of money adjustment associated with the accelerated funding.
In the event of a cost overrun, Woodside’s holding company (HoldCo) will contribute the incremental capital, providing capex certainty for Stonepeak and potential capex efficiency benefits for HoldCo.
Following the transaction, Stonepeak will hold a 40 per cent equity interest in Louisiana LNG Infrastructure LLC (InfraCo), with the remaining 60 per cent retained by Woodside’s holding company.
InfraCo holds the engineering, procurement, and construction (EPC) agreement with Bechtel — an industry leader in infrastructure delivery — and, subject to FID, will own and construct the liquefaction infrastructure and common user facilities.
Woodside will continue to operate the project.
The investment is supported by a long-term liquefaction tolling agreement between InfraCo and HoldCo, featuring competitive tolling fee terms. HoldCo will be responsible for gas supply and LNG offtake.
The Louisiana LNG project is permitted for a total capacity of 27.6 million tonnes per annum (mtpa) and is nearing FID for the initial three production trains, which will provide a foundation development capacity of 16.5 mtpa.
Construction is underway, with front-end engineering design completed and Bechtel engaged as EPC contractor.
The estimated forward cost for the foundation development remains US$900–960 per tonne, including EPC costs, owner’s costs, allowances, and contingency, but excluding pipeline and HoldCo costs.
Completion of the transaction is contingent on conditions precedent, including FID for the Louisiana LNG development and requisite regulatory and legal approvals.
The effective date is set for January 1, 2025, with closing targeted in the second quarter of 2025.
Upon completion, Stonepeak is expected to make a payment of approximately $2 billion for its share of capex incurred since the effective date.
Woodside CEO Meg O’Neill welcomed Stonepeak as a partner, highlighting Stonepeak’s strong track record in US gas and LNG infrastructure investments.
O’Neill emphasised that the transaction validates the project’s quality, enhances its attractiveness to other potential equity partners, and positions Louisiana LNG as a globally competitive investment.
She noted that the partnership, combined with the Bechtel EPC agreement and existing regulatory permits, gives Woodside confidence to progress rapidly toward FID.
Woodside continues to engage with additional potential partners, targeting an equity sell-down of around 50 per cent in the integrated project.
Stonepeak Senior Managing Director James Wyper expressed confidence in the project’s critical role in the US LNG export market, describing it as a compelling investment opportunity with an attractive risk-reward profile and strong partners in Bechtel and Woodside.
Woodside’s financial advisers are RBC Capital Markets and Evercore, with Norton Rose Fulbright as legal adviser.
This transaction marks a significant advancement for Woodside’s US LNG ambitions, providing capital flexibility and strengthening its position to deliver long-term shareholder value.
