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Woodside finalises sell-down of Louisiana LNG stake to Stonepeak
Australia’s Woodside Energy has sold down 40% of its stake in the US LNG facility it bought from Tellurian for US$1.2Bn in mid-2024
Australian oil and gas major Woodside Energy has completed a sell-down deal with US-based infrastructure investment firm Stonepeak.
The Woodside and Stonepeak deal from early April 2025 agreed the sale of a 40% stake in Louisiana LNG to Stonepeak, which will take on US$5.7Bn of the total expenses in the project’s initial projected costs, or expected capital expenditure for the foundation development of Louisiana LNG. The payments will come, according to Woodside, "on an accelerated basis, contributing 75% of project capital expenditure in both 2025 and 2026".
"The closing payment of approximately US$1.9Bn received by Woodside reflects Stonepeak’s 75% share of capex funding incurred since the effective date of 1 January 2025," Woodside said.
Woodside chief executive Meg O’Neill said the deal with Stonepeak creates additional value for investors.
“Our partnership with Stonepeak... was a key milestone towards achieving a successful final investment decision," Ms O’Neill said. "The accelerated capital contribution from Stonepeak enhances Louisiana LNG project returns and strengthens our capacity for shareholder returns ahead of first cargo from the Scarborough Energy Project in Western Australia, targeted for the second half of 2026."
The Woodside chief executive also noted the company has continued to see "strong interest" from additional potential partners open to taking backing stakes in the development of Louisiana LNG.
Woodside has reportedly been courting additional investment in the project, with Ms O’Neill telling the Wall Street Journal in late April that the company was in talks with a ’couple of parties’ and wants to cut its capital expenditures on the project roughly by half. A separate report from Bloomberg around the same time period said Kuwait Petroleum was in talks to take a stake in Louisiana LNG and its overseas foreign petroleum exploration unit was considering a supply deal.
Woodside took a final investment decision on its 16.5M tonnes per annum (mta) Louisiana LNG terminal in late April 2025, a few weeks after announcing the deal with Stonepeak. The development plan for the production and export terminal includes three trains, and Woodside said at the time it is targeting first gas in 2029. The development also has expansion capacity for two additional LNG trains and is fully permitted for a total capacity of 27.6 mta.
"Development of Louisiana LNG will position Woodside as a global LNG powerhouse, enabling the company to deliver approximately 24.0 mta from its global LNG portfolio in the 2030s, and operate over 5% of global LNG supply," the company said in a statement to investors at the time.
At full capacity, the project is expected to generate approximately US$2.0Bn of annual net operating cash in the 2030s. Woodside said the addition of the project takes its potential net cash flow projections over US$8.0Bn annually in the next decade.
Woodside said its forecast for total capital expenditure on the LNG project, pipeline and management reserve is US$17.5Bn.
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