Updated November 24, 2025 -On October 22, 2025, Woodside named Williams, a major U.S. gas infrastructure firm, as a 10 percent partner in its Louisiana LNG project and designated the company to operate 80 percent of the associated Driftwood Pipeline. Williams will contribute US $378 million upfront for the equity stake and US $1.9 billion toward construction funding. With Williams’ investment, Woodside says its net capital commitment to the project falls to US $9.9 billion from US $11.8 billion.
Woodside also already sold a 40 percent stake in the infrastructure company of the project to Stonepeak for US $5.7 billion. The developer approved US $17.5 billion in capital for the Louisiana LNG project in April, and continues to seek partners to further de-risk the project. The U.S. LNG landscape also continues to strengthen its take on energy markets as seen with US $44 billion Alaska LNG pipeline project latest pull of Asian market offtakers.
The project has capacity cap of up to 16.5 million tonnes per annum (Mtpa) of liquefied natural gas. Start of production is expected by 2029. Backed by major international investment and local support, the project also has an expansion potential to 27.6 Mtpa. Betchel is spearheading its construction, with early works already over 20 percent complete.
Groundbreaking Ceremony in Southwest Louisiana
Reported Sept 15, 2025 – Woodside Energy recently marked a major milestone in the $17.5 billion Louisiana LNG Project with a groundbreaking ceremony in southwest Louisiana. Momentum on the project has evidently taken pace since a final investment decision (FID) was reached in April 2025. Woodside’s Louisiana LNG project is advancing steadily, with more than 22 percent of the first train completed as of the groundbreaking ceremony. This is as the LNG project continues to push toward 2029 completion date.
During the groundbreaking ceremony for Woodside’s Louisiana LNG Project, CEO Meg O’Neill described the project as a “game-changer” for both Woodside and Louisiana. O’Neill also highlighted its role in boosting shareholder returns, securing U.S. energy exports, and creating tens of thousands of jobs. She also emphasized on the project’s scale, calling it the largest foreign direct investment in Louisiana’s history.
Woodside’s $17.5 Billion Investment in the Louisiana LNG Project
Reported 10th September – Louisiana is on its path to secure a spot in the world energy market. This comes after Australia’s Woodside Energy sought to set up major energy infrastructure in the state. This energy infrastructure development is already underway. Upon fruition, it is expected to significantly boost to the state’s economy.
Woodside Energy‘s intentions of proceeding with its $17.5 billion investment in the Louisiana LNG project are vividly clear. The project marks a momentous leap toward meeting the world’s sustained need for traditional fuels. It also positions the U.S. – and Louisiana specifically – as a cornerstone supplier of low-cost natural gas to world markets. Woodside also recently signed a nine-year supply deal with Turkey’s state energy company, BOTAS, to deliver up to 5.8 bcm of LNG, with the earliest deliveries set for 2030.
This also comes as the Australian gas and oil company signs a hydrogen supply deal (Sept 25, 2025) with Japan’s JSE and Korea Electric Power Corporation (KEPCO) from its H2Perth Hydrogen Project currently under development in Western Australia.
Outlook on Woodside’s Louisiana LNG Project After Latest Update
The project was acquired in 2023 by Woodside with its acquisition of Tellurian. Development is phased. Early development features construction of three liquefaction trains with a capacity of about 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. This emphasizes on 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.
Woodside further de-risked the investment in February by signing an agreement to sell a 40% stake in the supporting infrastructure of the project to Stonepeak for $5.7 billion. This capital injection will pay for about 75% of 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 commented on the move.
Alongside Woodside’s $17.5 billion Louisiana LNG project in Calcasieu Parish, Sempra’s Cameron LNG terminal stands as another major Gulf Coast export facility, highlighting Louisiana’s role as a hub for U.S. liquefied natural gas.
Additionally, in Texas, the proposed Texas GulfLink deepwater port, planned about 30 miles southeast of Freeport also received a Clean Air Act permit from the EPA.
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 through balancing long-life, flexible LNG assets with high-return oil assets. It 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. This momentum is not tapering down as more major projects continue to outcrop in the state. These include 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. Additionally, the Monkey Island LNG project will also add to Louisiana’s portfolio of major LNG projects in the U.S.
More Energy Investments
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. Alongside this are 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
