Woodside Finalizes Investment in Landmark Louisiana LNG Project, Poised to Transform Global LNG Market Presence
Woodside has officially reached a pivotal milestone by announcing its Final Investment Decision (FID) to move forward with the development of its three-train, 16.5 million tonne per annum (Mtpa) Louisiana LNG project. This decision marks a significant step in Woodside’s global strategy, with the first shipment of liquefied natural gas (LNG) from the project targeted for 2029.
The Louisiana LNG development represents more than just another large-scale energy project; it embodies Woodside’s strategic transformation into a dominant global player in the LNG sector. With this project, Woodside aims to deliver approximately 24 Mtpa of LNG from its global portfolio by the 2030s—placing the company in a position to operate over 5% of the total global LNG supply. This marks a fundamental shift in scale for Woodside, whose current operations are heavily concentrated in the Australian LNG market.
What makes Louisiana LNG particularly attractive is its scalable design and future expansion potential. The project is already fully permitted to grow beyond its initial capacity, with provisions in place to expand operations by adding two more LNG trains. This would bring the project’s total capacity up to 27.6 Mtpa, allowing Woodside further flexibility to respond to global LNG demand dynamics in the coming decades.
From a financial perspective, the Louisiana LNG development is set to become a cornerstone of long-term value creation for Woodside and its shareholders. The project comfortably exceeds the company’s internal capital allocation benchmarks, delivering an internal rate of return (IRR) projected to exceed 13%. Furthermore, the investment is forecast to pay for itself within a seven-year period, a relatively short payback timeline for a project of this magnitude.
Once operating at full capacity, the foundation project alone is expected to generate around $2 billion in annual net operating cash flows throughout the 2030s. When considered alongside the rest of Woodside’s global portfolio, the company anticipates generating more than $8 billion in annual net operating cash flow in the same period, which would provide robust financial resilience and flexibility for future growth and returns to shareholders.
The total forecast capital expenditure for the Louisiana LNG project—including associated pipeline infrastructure and management reserve costs—stands at approximately US$17.5 billion on a 100% basis. A significant portion of this capital will be provided by Stonepeak, a strategic financial investor involved through Louisiana LNG Infrastructure LLC. Stonepeak is expected to contribute approximately $5.7 billion toward the project’s capital requirements, with their investment front-loaded to cover 75% of expenditure during 2025 and 2026. Woodside’s share of the capital expenditure is projected at US$11.8 billion, a substantial investment that reflects its majority ownership and operational leadership in the project.
Importantly, the FID does not alter Woodside’s greenhouse gas emissions reduction targets. The company confirmed that the starting base year for its emission reduction commitments remains unchanged. This ensures that Woodside’s ongoing sustainability goals and environmental accountability measures remain aligned with its broader strategy, even as it expands internationally.
Commenting on the historic nature of the announcement, Woodside CEO Meg O’Neill described the FID as a transformative moment for the company, reinforcing its strategic trajectory and elevating its global LNG standing.
“Louisiana LNG is a game-changer for Woodside,” said O’Neill. “This decision positions our company to become a true global LNG powerhouse, supporting enduring returns for our shareholders over the long term. It reflects the confidence we have in the strength of this investment and our ability to execute large, complex energy projects.”
She emphasized that Louisiana LNG is a “world-class, de-risked” investment, leveraging Woodside’s deep expertise in project delivery, operational efficiency, and LNG marketing. These core capabilities, built over decades of experience primarily in Australia, will now be brought to bear in the North American context.
“We are leveraging our proven strengths across multiple disciplines—from project management to customer engagement—to ensure this asset delivers the high returns and cash flow that underpin long-term shareholder value,” O’Neill added.
She also pointed out that the project aligns closely with Woodside’s capital discipline framework, meeting or exceeding all relevant thresholds for investment return. This includes financial performance metrics, risk assessment criteria, and alignment with long-term strategic objectives.
Incorporating Louisiana LNG into its portfolio provides Woodside with both geographic and asset-class diversification. Its Australian LNG assets, such as the Pluto and North West Shelf projects, are long-life and operationally stable. Meanwhile, the Louisiana LNG project offers a complementary growth platform in the United States—one of the most prolific and low-cost natural gas regions globally.
“Combining the established strength of our Australian operations with this new U.S. project provides a more balanced and resilient global LNG portfolio,” O’Neill noted. “The U.S. market offers access to abundant, low-cost gas supply, and the project is supported by extensive and mature interstate and intrastate gas infrastructure.”
Louisiana LNG also enables Woodside to broaden its market exposure. The project’s location and logistics offer marketing access across both the Pacific and Atlantic Basins, allowing Woodside to target energy consumers in Asia, Europe, and beyond. This geographic flexibility supports Woodside’s LNG marketing strategy, which is focused on meeting the growing global demand for clean, reliable, and secure energy.
Global demand for LNG is expected to remain robust for the foreseeable future, particularly in Asia and Europe. These regions are navigating the twin challenges of energy security and decarbonization. LNG, with its comparatively lower carbon emissions relative to coal and oil, continues to play a critical transitional role in many national energy strategies. Woodside’s new U.S. LNG production capacity will be well-positioned to serve these markets.
“We are seeing sustained and increasing interest from strategic partners, reflecting strong market confidence in this project,” said O’Neill. “We are progressing advanced discussions to sell down further equity in the Louisiana LNG project, in line with our approach on the Scarborough project in Australia.”
She added that these equity sell-downs are part of Woodside’s broader financial strategy to manage capital intensity while accelerating value creation. Bringing in strategic partners allows the company to de-risk its exposure while retaining operational control and long-term upside.
Beyond its commercial and environmental considerations, Louisiana LNG is also expected to deliver significant economic benefits in the United States, particularly in Louisiana. The project will represent the largest single foreign direct investment in the state’s history. During the construction phase, it is projected to support approximately 15,000 jobs across the nation, including direct and indirect employment.
“This is a milestone for Woodside and a moment of pride,” O’Neill concluded. “We are grateful for the support and collaboration of both the U.S. federal government and the Louisiana state authorities, who have recognized the strategic importance of this project.”
The Louisiana LNG FID is notable as the first greenfield U.S. LNG project to reach such a decision since July 2023. In a competitive and capital-intensive global energy landscape, Woodside’s move reflects both strong internal confidence and a broader market consensus that LNG remains vital to the global energy mix for decades to come.
