Woodside Energy has described its $5.7 billion agreement with U.S. infrastructure investor Stonepeak as a “significant step” toward a final investment decision (FID) on its Louisiana-based LNG project, stating that the deal will reduce the company's capital expenditure requirements and improve project economics.
The transaction will see Stonepeak acquire a 40% stake in the LNG project, with plans for further equity sales currently under discussion with other potential strategic partners.
“Bringing in an infrastructure partner unlocks new opportunities and paves the way for additional strategic equity investors,” said CEO Meg O’Neill. “This partnership helps de-risk the project and enhances our capital flexibility.”
Woodside acquired Tellurian’s assets for $1.2 billion last year to develop the 27.6 million metric tonnes per year Louisiana LNG facility — formerly known as Driftwood LNG — in four phases, aiming to meet rising global gas demand. The first phase alone is expected to cost around $16 billion.
Investor concerns over the capital intensity of Woodside’s U.S. expansion strategy have weighed on the company’s share performance, which has lagged behind peers in recent quarters.
Under the terms of the agreement, Stonepeak is expected to cover 75% of capital expenditures for 2025 and 2026, significantly improving project cash flow and financial sustainability.
James Wyper, Senior Managing Director at Stonepeak, said the Louisiana LNG venture represents “an attractive opportunity to invest in a strategically positioned LNG export project that is nearing final approval and construction.”
