Australian oil and gas giant Woodside has made a final investment decision to develop the three-train, 16.5 million tonne per annum (Mtpa) Louisiana LNG development. Woodside is targeting first LNG in 2029.
Development of Louisiana LNG will enable the company to deliver approximately 24 Mtpa from its global LNG portfolio in the 2030s, and operating over 5% of global LNG supply. The development has expansion capacity for two additional LNG trains and is fully permitted for a total capacity of 27.6Mtpa.
Related article: Woodside to sell 40% stake in Louisiana LNG to Stonepeak
“Louisiana LNG represents a compelling investment that will deliver significant cash flow and create long-term value for Woodside shareholders. It exceeds Woodside’s capital allocation targets, delivering an internal rate of return (IRR) above 13% and a payback period of seven years,” Woodside said in a statement.
“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,” Woodside CEO Meg O’Neill said.
“Adding Louisiana LNG to our established Australian LNG business provides Woodside with a balanced and resilient portfolio, combining long-life, flexible LNG assets with high-return oil assets.”
Related article: Woodside to divest Trinidadian assets to Perenco
Meanwhile, Bloomberg reports Woodside Energy is in talks with an overseas unit of Kuwait Petroleum to sell a stake in the Louisiana LNG project.
Woodside has inked a deal to sell a 40% stake in the project to US infrastructure investor Stonepeak, as well as cementing a supply deal with German utility Uniper for 1 million tonnes of LNG per annum from the project.
