Woodside has made a final investment decision to develop the three-train, 16.5 million tonne per annum (Mtpa) Louisiana LNG project, targeting the first LNG in 2029.
Development of Louisiana LNG will position Woodside as a global LNG powerhouse, enabling 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 27.6 Mtpa.
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. At full capacity, the foundation project is expected to generate approximately $2 billion of annual net operating cash in the 2030s.
It will drive Woodside’s next chapter of value creation, giving the company’s global portfolio the potential to generate over $8 billion of annual net operating cash in the 2030s.
The forecast total capital expenditure for the LNG project, pipeline and management reserve is $17.5 billion.
Stonepeak, as an investor in Louisiana LNG Infrastructure LLC, will provide $5.7 billion towards the expected capital expenditure for the LNG project on an accelerated basis, contributing 75% of capital expenditure in both 2025 and 2026.
Woodside’s share of forecast total capital expenditure is $11.8 billion.
“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,” said Meg O’Neill, Woodside CEO.