- Woodside Energy has approved a $17.5 billion LNG project in Louisiana, the first U.S. go-ahead under President Trump’s renewed pro-fossil fuel agenda.
- The company locked in costs through fixed-price contracts and a foreign trade zone location, and secured a 40% investment from Stonepeak.
Australia’s Woodside Energy has approved the $17.5 billion development of a liquefied natural gas (LNG) project in Louisiana. The company is confident that strong demand and a pro-fossil fuel U.S. administration will deliver competitive returns.
The company announced the final investment decision on Monday, marking the first such approval for a U.S. LNG plant since President Donald Trump returned to office, declared an energy emergency, and pledged to expand America’s energy exports.
The CEO of Woodside, Meg O’Neill, said President Trump’s push for “American energy dominance” supported the project’s prospects, with first gas expected in 2029. She also suggested that new tariffs could give Woodside an advantage over rivals.
“The tariffs complicate things and create volatility. But in some ways, that gives us an edge,” O’Neill told Reuters, citing the project’s early lead over other proposed U.S. LNG plants, a fixed-price construction contract with Bechtel, and pre-issued purchase orders for long-lead items.
“We’ve locked in those costs. That lets us make a final investment decision, while other projects may need to rework their plans,” Meg O’Neill said.
Woodside located the project in a foreign trade zone, securing relief on certain customs duties. O’Neill said U.S.-based contractors, workers and services would deliver most of the construction, and Woodside would source roughly half of the equipment and materials domestically.
The company said Louisiana LNG would lift its global LNG output to about 24 million tonnes annually by the mid-2030s, accounting for over 5% of global supply and catering to European and Asian demand.
Woodside expects the project to generate $2 billion in annual net operating cash in the 2030s, with a projected internal rate of return of 13% and a payback period of seven years.
“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,” O’Neill said.
Louisiana Governor Jeff Landry described the project as the largest single foreign direct investment in the state’s history. “We are working with President Trump to deliver on America’s energy potential,” he said.
Private equity firm Stonepeak has agreed to contribute $5.7 billion to the capital cost in return for a 40% stake in the project’s infrastructure arm.
O’Neill said Woodside was pushing ahead on an “aggressive” timeline to bring in more partners and reduce its equity further. Analysts expect the company to sell an additional 20–30% stake in the holding company to meet its 50% sell-down target and reduce its exposure to project risks.
Following the announcement, Woodside shares rose 1.2%, trailing the broader energy subindex, which gained 2.4%.
O’Neill said the final approval had de-risked the project for potential investors but declined to confirm whether Woodside was in talks with Kuwait Petroleum.
Louisiana Governor Jeff Landry hailed the project as the largest foreign direct investment in the state’s history. “We are working with President Trump to deliver on America’s energy potential,” he said.
Following the announcement, Woodside shares rose 1.2%, though they lagged behind the broader energy subindex, which gained 2.4%.