In a move that confirms Louisiana’s place in the world energy market, Australia-based Woodside Energy announced it will proceed with its massive $17.5 billion investment in the Louisiana LNG project. The announcement, confirmed Monday, is a large leap toward meeting the world’s sustained need for traditional fuels while positioning the U.S.—and Louisiana specifically—as a cornerstone supplier of low-cost natural gas to world markets.
The project, which Woodside acquired in 2023 with its acquisition of Tellurian, is anticipated to begin producing gas in 2029. It will be phased, with early development including the construction of three liquefaction trains that have a capacity to produce up to 16.5 million metric tons of LNG annually. Woodside also has permission to ramp up output to as much as 27.6 million tons a year—emphasizing the project’s scope and flexibility.
Calling the ultimate investment decision a “historic moment,” Woodside CEO Meg O’Neill underscored the pioneering scale of the project. “Louisiana LNG is a game-changer for Woodside,” she said. “It makes our company a global LNG leader and enables us to deliver enduring returns to shareholders.”
To reassure investors of the project’s capital intensity, Woodside estimates an internal rate of return of over 13% and anticipates net operating cash flow of $2 billion annually from the first phase commencing in 2030. In February, Woodside further de-risked the investment by signing an agreement to sell a 40% stake in the supporting infrastructure of the project to Stonepeak for $5.7 billion—an injection that will pay for about 75% of capital expenditure in 2025 and 2026.
“This de-risked and compelling investment world-class project maximizes Woodside’s underlying strength in project delivery, operations, and customer connection to create long-term value,” O’Neill said.
Woodside Energy Louisiana LNG Project
Key Facts
Investment: $17.5 billion
Announcement Date: April 28, 2025
Production Timeline: Anticipated to begin producing gas in 2029
Project Origin: Acquired by Woodside in 2023 through Tellurian acquisition
Project Scale:
Initial development: Three liquefaction trains
Initial capacity: 16.5 million metric tons of LNG annually
Permitted expansion capacity: Up to 27.6 million tons annually
Financial Outlook
Expected Returns:
Internal rate of return exceeding 13%
Anticipated net operating cash flow of $2 billion annually from first phase (2030 onwards)
Strategic Partnership:
40% stake in supporting infrastructure sold to Stonepeak for $5.7 billion
This investment covers approximately 75% of capital expenditure for 2025-2026
Louisiana’s Rise as Global Energy Powerhouse
The Louisiana LNG development not only adds depth to Woodside’s global portfolio—balancing long-life, flexible LNG assets with high-return oil assets—but also solidifies Louisiana’s rapidly growing energy leadership.
With industry giants Cheniere’s Sabine Pass and Sempra’s Cameron LNG already established in the state, Louisiana is proving to be a perfect export hub. The momentum is not reducing with major projects like Venture Global‘s $28 billion CP2 LNG, the recent launch of its Calcasieu Pass, and the $18 billion development at Plaquemines LNG. Combined, these projects emphasize the state’s leadership in the LNG export market while supporting economic development through the creation of jobs and higher tax revenues.
Simultaneously, Louisiana is diversifying its energy base. Woodside’s LNG project is one of an increasing number of forward-looking investments, including CF Industries’ proposed $4.2 billion blue ammonia plant in Ascension Parish, which will use carbon capture to make 1.4 million metric tons of low-carbon ammonia annually. Air Products is also moving forward on its multi-billion-dollar Louisiana Clean Energy Complex, which is clean hydrogen-oriented.
Other new developments—such as Energy Transfer’s Lake Charles LNG and Commonwealth LNG—signal further expansion, while clean energy initiatives such as the AES Oak Ridge Solar Project and the Woodland Biofuels green hydrogen facility demonstrate the state’s clean energy vision. Louisiana is also making investments in robust carbon capture and storage infrastructure, further enhancing its energy resilience.
In combining historic energy prowess with innovation, Louisiana is building a balanced path forward. Projects like Woodside’s LNG terminal and CF Industries’ ammonia plant not only indicate the state’s adaptability but also secure its central role in energizing the here and now and fueling the energy transition ahead.
Read also: CF Industries to Build $4B Ammonia Production Facility in Ascension Parish
