GLNG: Woodside’s CEO says it will add partners to Louisiana LNG project before March

Australia’s Woodside Energy plans to onboard several new partners as it sells a 50% stake in its Louisiana LNG project, CEO Meg O’Neill told Reuters on November 28.

The Australian energy major expects to have brought on its new members by the first quarter of 2025, at which time it is targeting to give the financial green light to the project it purchased from US LNG developer Tellurian.

Woodside agreed to purchase the project from the financially troubled firm in July and wrapped up the acquisition in October for $1.2bn as part of the Australian company’s ambitious plans to significantly expand its portfolio.

Already in September, Woodside began holding talks for partnerships on the project at that time opening negotiations with gas producers, pipeline firms and infrastructure companies. Additionally, since then the firm has also spoke with LNG buyers, which could purchase an equity stake along with offtake supplies.

“The goal is to put together a dream team where everybody in the partnership brings something of value. It might be an understanding of the onshore gas market, it might be infrastructure capital and LNG offtake and marketing expertise,” O’Neill told Reuters.

Woodside has yet to reveal any of the firms it has held negotiations with; however, Reuters reported in October that the Australian firm had begun discussions with Tokyo Gas on a possible stake in the Louisiana project, citing sources familiar with the subject.

Upon completion, the huge facility will be capable of processing as much as 27.7mn tonnes per year (tpy) of LNG. A production target of 2028 has been set, with Woodside expected to secure natural gas feedstock once a successful final investment decision (FID) has been taken.

O’Neill expects the project to come with a price tag of about $900 to $960 per tonne of LNG after renegotiating the terms of the construction contract with Bechtel. The US Gulf Coast has been hit with inflationary pressures that have seen costs soar amid a shortage of skilled labour.

Upon acquisition of the project from Tellurian, the Australian firm changed the name of the project from Driftwood LNG to Woodside Louisiana LNG.

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