Woodside Approves $17.5 Billion Louisiana LNG Export Project

Woodside Energy Group has announced a final investment decision (FID) for its massive $17.5 billion Louisiana LNG production and export facility in Calcasieu Parish.

The project, which represents the largest single foreign direct investment in Louisiana’s history, will be capable of producing 16.5 million metric tons per annum (Mtpa) of LNG.

The facility, acquired from Houston-based Tellurian Inc. in 2024, was formerly known as the Driftwood LNG project. Construction is already underway, with first LNG production targeted for 2029.

The development includes three LNG trains with expansion capacity for two additional trains. The project is fully permitted for a total capacity of 27.6 Mtpa. Once operational, Woodside expects to control over 5% of global LNG supply, with their global portfolio delivering approximately 24 Mtpa in the 2030s.

The project’s financing structure involves Stonepeak as an investor in Louisiana LNG Infrastructure LLC, contributing $5.7 billion towards capital expenditure, with an accelerated payment schedule of 75% in both 2025 and 2026. Woodside’s share of the total capital expenditure is $11.8 billion.

According to Woodside CEO Meg O’Neill, “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.” The project is expected to generate approximately $2 billion in annual net operating cash flow in the 2030s.

The development strengthens Louisiana’s position as a leading LNG export hub. The state currently operates four LNG export terminals and handles 61% of the nation’s LNG exports.

“Woodside’s decision to invest in Louisiana is an unmistakable signal to the world that Louisiana is the epicenter of powering the globe,” said Governor Jeff Landry.

Woodside has already shown its commitment to the region through local investments, including a $650,000 contribution in 2024 to support environmental preservation, coastal protection, education, and workforce development initiatives along the Louisiana Gulf Coast.

The project is expected to create thousands of jobs during both construction and operational phases.

“As the largest single foreign direct investment in Louisiana’s history, Louisiana LNG will also be the first greenfield US LNG project to go to final investment decision since July 2023,” added O’Neill.

Subscribe for Daily Maritime Insights

Sign up for gCaptain’s newsletter and never miss an update

— trusted by our 109,149 members