Prime Highlights
- Woodside Energy to sell 40% stake in its Louisiana LNG project to U.S.-based Stonepeak for $5.7 billion.
- Woodside to hold on to 60% and aims to lower its stake to approximately 50% by bringing on additional partners.
Key Facts
- The Louisiana LNG project will have a total capacity of 27.6 million tonnes per annum (MTPA).
- Final investment decision awaiting, with Phase I scheduled at 11 MTPA production.
Key Background
Woodside Energy, Australia’s largest independent oil and gas firm, is developing its Louisiana-based liquefied natural gas (LNG) project on a strategic partnership with US-based investment company Stonepeak. According to the newly announced deal, Stonepeak would buy 40% non-operating interest in the project for an investment of approximately $5.7 billion. The funding terms involve an upfront payment along with further cash injections over 2025 and 2026.
Woodside will have operations of the project with 60% stake after the transaction. Nevertheless, the company announced that it would open up for new partners diluting its stakes to about 50% in the future. This is included in Woodside’s overall corporate strategy of de-risking its exposure of capital and using strategic partners to spur international LNG demand.
The Louisiana LNG project, or Port Arthur LNG project, will be phased over four phases. Stage one will have a capacity to produce 11 million tonnes per annum of LNG, with a long-term vision to reach 27.6 MTPA. The project awaits final investment decision, which will depend on regulatory permits, market situation, and fulfillment of commercial arrangements.
The Stonepeak partnership is viewed as a definitive sign of market confidence, particularly as global energy consumption trends evolve and geopolitical tensions make LNG an ever more critical transition fuel. The project is consistent with U.S. government policy goals to advance domestic energy development and export growth. For Woodside, the transaction also offers a good beachhead in the North American energy market and diversifies its portfolio with scalable assets in a strategic location.
With the buyout of Stonepeak as a significant shareholder, Woodside renders the project economically viable and positions it for additional development and global partnership in the LNG industry.
