Woodside Energy has approved its $17.5 billion Louisiana LNG project, marking a key moment for both the company and Louisiana. This investment positions Woodside as a major player in the global liquefied natural gas (LNG) market, promising economic benefits and job creation for the region.
The project, approved on Tuesday, plans to build a three-train LNG facility with a capacity of 16.5 million tonnes per year in Calcasieu Parish, Louisiana. Woodside aims to start LNG production in 2029, with the facility expected to run for over 40 years, taking advantage of the low-cost natural gas available in the United States.
Woodside CEO Meg O’Neill called the decision a “game-changer” for the company. She stated, “Louisiana LNG will help us become a global LNG leader and provide lasting shareholder returns.” The project is expected to generate around $2 billion in annual net operating cash for Woodside in the 2030s, potentially raising its total cash generation to over $8 billion a year.
Louisiana Governor Jeff Landry supported this view, highlighting the project’s importance. He said, “Woodside’s investment in Louisiana shows that our state is a key player in energy production.” This project is the first greenfield LNG project to receive final approval under President Trump’s second term.
The Louisiana LNG project is likely to become the largest single foreign investment in Louisiana’s history. During construction, it is expected to support about 15,000 jobs across the United States. Once operational, it will create thousands of long-term jobs and significantly increase state and local tax revenues.
The project stands to benefit from its location in a foreign trade zone and access to established interstate and intrastate gas supply networks. Woodside plans to sell parts of the project to strategic partners, similar to its approach with the Scarborough Energy Project in Australia.
Investment firm Stonepeak will provide $5.7 billion, which will cover 75% of capital costs in both 2025 and another unspecified year. This reduces Woodside’s expected capital costs to $11.8 billion.
The Louisiana LNG facility is well-placed to serve customers in the Pacific and Atlantic markets, enhancing Woodside’s position in Asia. The project has signed an agreement with Uniper SE to supply up to 1 million tonnes per year of LNG for 13 years, starting when the facility begins operations. The project has permits for a total capacity of 27.6 million tonnes, allowing for future expansion with two additional LNG trains.
Woodside expects that Louisiana LNG will help it provide around 24 million tonnes from its global LNG portfolio in the 2030s, operating over 5% of the world’s LNG supply. Despite the project’s scale, Woodside has stated that its goals for reducing greenhouse gas emissions will remain unchanged.