Woodside Energy has made a final investment decision to move forward with its $17.5 billion Louisiana LNG project, marking a major expansion of the Australian energy company’s global liquefied natural gas portfolio.
According to a company press release, the development will feature three LNG trains expected to produce up to 16.5 million tons per annum (MTPA) once fully operational, with first LNG targeted for 2029. The site is fully permitted for a total capacity of 27.6 Mtpa, allowing room for future expansion with two additional trains.
If completed as planned, the project could position Woodside among the world’s leading LNG suppliers, enabling it to deliver approximately 24 Mtpa globally in the 2030s—more than 5% of projected global LNG supply, the company stated.
CEO Meg O’Neill said, “Louisiana LNG will enable us to deliver enduring shareholder returns while strengthening our presence across the Atlantic and Pacific energy markets.”
Based on Woodside’s projections, the Louisiana LNG development is expected to generate approximately $2 billion in annual net operating cash in the 2030s. The company anticipates its broader LNG portfolio could deliver over $8 billion in annual net operating cash during that same period.
Woodside’s share of the total forecast capital expenditure is $11.8 billion. Stonepeak, a private equity firm and investor in Louisiana LNG Infrastructure LLC, will provide $5.7 billion toward project costs on an accelerated basis, contributing 75% of capital expenditures in both 2025 and 2026, according to the company.
The project is projected to yield an internal rate of return above 13% and achieve payback within seven years, Woodside said. The company emphasized that the investment meets its capital allocation thresholds and reflects a disciplined approach.
The project will source natural gas from abundant and low-cost U.S. reserves and benefit from access to well-established interstate and intrastate pipeline networks, Woodside said. Woodside also said it sees strong marketing opportunities across both the Atlantic and Pacific Basins, including in Asia and Europe, where LNG demand remains strong due to energy security and decarbonization efforts.
The company said Louisiana LNG development is expected to support about 15,000 U.S. jobs during construction, which Woodside noted represents the largest single foreign direct investment in Louisiana’s history. It is also the first greenfield U.S. LNG project to reach final investment decision since July 2023, the company noted.
Woodside added that discussions are ongoing with potential strategic partners and that the company is pursuing further equity sell-downs, a move it said will help reduce capital exposure and accelerate the project's value—an approach similar to its Scarborough Energy Project in Australia.
The company acknowledged support from both the U.S. federal government and the state of Louisiana as the project moves into its next phase.
