Woodside Energy has moved forward with a final investment decision (FID) for its landmark Louisiana LNG development, a US$17.5 billion project set to transform the company into a global liquefied natural gas (LNG) powerhouse.
The three-train facility, with a capacity of 16.5 million tonnes per annum (Mtpa), is scheduled to deliver its first LNG cargo in 2029 and positions Woodside to operate over 5 per cent of global LNG supply in the 2030s.
The Louisiana LNG project, located in Calcasieu Parish, Louisiana, is fully permitted for expansion up to five trains and a total capacity of 27.6 Mtpa.
This development will allow Woodside to deliver approximately 24 Mtpa from its global LNG portfolio in the next decade.
Woodside CEO Meg O’Neill described the FID as “a historic moment for the company,” adding: “Louisiana LNG is a game-changer for Woodside, set to position our company as a global LNG powerhouse and enable us to deliver enduring shareholder returns.
“This world-class project is a compelling and de-risked investment.
“It leverages Woodside’s proven strengths in project execution, operational excellence, marketing and customer relationships to offer significant cash generation and drive long-term shareholder value.
“We have secured quality partners and are now ready to take a final investment decision.
“This decision is another demonstration of Woodside’s disciplined investment approach, with the project delivering returns that exceed our capital allocation framework.”
The foundation phase is expected to generate approximately US$2 billion in annual net operating cash in the 2030s, with Woodside’s global portfolio projected to produce over US$8 billion annually during that period.
The project is forecast to deliver an internal rate of return (IRR) above 13 per cent and a payback period of seven years.
Stonepeak, an investor in Louisiana LNG Infrastructure LLC, will contribute US$5.7 billion toward the capital expenditure for the project, covering 75 per cent of capex in both 2025 and 2026.
Woodside’s share of the total forecast capital expenditure is US$11.8 billion.
The company continues to seek additional strategic partners to further reduce its capital exposure: “We are pleased with the strong level of interest from potential strategic partners and are advancing discussions targeting further equity sell-downs.
“This will further reduce Woodside’s capital and accelerate the value of Louisiana LNG and is consistent with the approach we have taken with our Scarborough Energy Project in Australia,” O’Neill said.
The project is expected to support approximately 15,000 jobs during construction and is described as the largest single foreign direct investment in Louisiana’s history.
O’Neill emphasised the project’s strategic advantages: “The project benefits from access to abundant low-cost gas resources in the United States and boasts an asset lifespan of more than 40 years.
“It also has access to well-established interstate and intrastate gas supply networks.
“The marketing opportunities Louisiana LNG offers across the Pacific and Atlantic Basins leverages Woodside’s proven LNG marketing capabilities and complements our established position in Asia.
“This will position Woodside to even better serve global customers and meet growing energy demand.
“This supply can target strong and sustained demand for LNG expected in both Asia and Europe, as those markets pursue energy security and decarbonisation aspirations.”
Woodside confirmed that its greenhouse gas emissions reduction targets remain unchanged by the FID, with the emissions baseline unaffected by the new project.
The company hosted a teleconference led by CEO Meg O’Neill to provide an overview of the Louisiana LNG development and field questions from investors and analysts on Monday evening, 28 April 2025, CDT.
With this approval, Woodside cements its role as a leading player in the global LNG market, expanding its reach beyond Australia and reinforcing its commitment to meeting the world’s growing demand for secure and flexible energy supplies.
