Woodside has signed a binding agreement to sell a 40% stake in Louisiana LNG (liquefied natural gas) infrastructure in the Gulf Coast LNG corridor to Stonepeak, a global investment firm.
This agreement marks a significant step for Woodside, reducing its capital expenditure (capex) and enhancing the project’s attractiveness to potential equity partners.
Stonepeak will contribute $5.7bn towards the project’s capex, providing substantial financial backing.
This investment covers the three-train, 16.5 million tonnes per annum (mtpa) foundation development effective from 1 January 2025, with accelerated contributions in 2025 and 2026.
The transaction involves Stonepeak contributing 75% of the capex in 2025 and 2026, with the remainder funded in subsequent years.
The project, situated in close proximity to natural gas resources and direct access to the US Gulf, boasts a total permitted capacity of 27.6mtpa and is nearing a final investment decision (FID).
Woodside CEO Meg O’Neill said: “We are very pleased to have Stonepeak join us in Louisiana LNG, given their demonstrated track record investing in US gas and LNG infrastructure across LNG facilities, LNG carriers, and floating storage and regasification units.”
Woodside will continue to operate the project after completion of the transaction.
Construction is under way, with Bechtel as the engineering, procurement and construction (EPC) contractor.
“We are pleased with the strong level of interest from counterparties and customers in Louisiana LNG. We will continue advancing discussions with additional potential partners targeting an equity sell-down of around 50% in the integrated project,” O’Neill added.
“As we have demonstrated with our Scarborough and Pluto Train 2 Project in Australia, the addition of an infrastructure partner unlocks value and paves the way for other strategic equity partners.”
Woodside Energy is reportedly in discussions with several potential partners to sell stakes, with potential buyers including Tokyo Gas, JERA and Saudi Aramco-backed MidOcean Energy.
Stonepeak will hold 40% equity in Louisiana LNG Infrastructure (InfraCo), while Woodside’s Louisiana LNG (HoldCo) retains 60%.
InfraCo, operated by Woodside, will manage the EPC agreement and own the liquefaction infrastructure upon FID.
The investment is supported by a long-term liquefaction tolling agreement between InfraCo and HoldCo featuring competitive tolling fee terms, with the latter to manage gas supply and LNG offtake.
Despite Stonepeak’s 40% equity interest, its capital contribution is lower due to the time value of money adjustment.
