Woodside Finalizes 40% Sell-Down of Louisiana LNG to Stonepeak, Boosting Project Financing and Shareholder Value
Woodside Energy has officially completed the divestment of a 40% equity interest in Louisiana LNG Infrastructure LLC to Stonepeak, a globally recognized investment firm specializing in infrastructure and real assets. This strategic sell-down, first announced on April 7, 2025, represents a major financial and operational milestone for Woodside’s U.S. liquefied natural gas (LNG) ambitions.
The agreement, which reflects the strong investor confidence in the viability of the Louisiana LNG project, marks a pivotal development in Woodside’s broader strategy to diversify its LNG portfolio and enhance shareholder value through focused capital discipline.
A Transformational Transaction for Louisiana LNG
Under the terms of the deal, Stonepeak will contribute a total of USD 5.7 billion toward the expected capital expenditure (capex) required for the foundation phase of the Louisiana LNG development. Significantly, this contribution will be front-loaded, with Stonepeak providing 75% of the project’s capex needs for both 2025 and 2026. This approach accelerates construction timelines and significantly de-risks early-stage development, ensuring the project remains on a fast track toward a Final Investment Decision (FID).
Woodside has already received a closing payment of approximately USD 1.9 billion, representing Stonepeak’s 75% share of capex already incurred by Woodside since the effective date of January 1, 2025.
Woodside’s Chief Executive Officer Meg O’Neill welcomed the completion of the transaction and emphasized the strategic importance of the partnership with Stonepeak.
“Our partnership with Stonepeak reflects the attractiveness of Louisiana LNG and was a key milestone towards achieving a successful final investment decision,” O’Neill said. “Stonepeak is a high-quality partner with extensive investment experience across U.S. gas and LNG infrastructure.”
“The accelerated capital contribution from Stonepeak enhances Louisiana LNG project returns and strengthens our capacity for shareholder returns ahead of first cargo from the Scarborough Energy Project in Western Australia, targeted for the second half of 2026.”
O’Neill also noted that additional potential investors had expressed interest in the Louisiana LNG venture, signaling robust market appetite for exposure to U.S. LNG infrastructure, particularly projects backed by credible sponsors with execution capability.
Stonepeak’s Strategic Interest in LNG
Stonepeak, a New York-based private equity firm with over USD 55 billion in assets under management, has steadily grown its exposure to energy infrastructure over the past decade. The Louisiana LNG investment marks a continuation of its strategy to acquire and develop long-term infrastructure assets that offer attractive, risk-adjusted returns and align with global energy transition trends.
Stonepeak’s Senior Managing Director and Head of U.S. Private Equity, James Wyper, also expressed enthusiasm for the collaboration:
“Louisiana LNG will be a timely and strategic addition to the U.S. LNG export landscape as the world’s demand for cleaner, more flexible, and more affordable energy continues to grow,” Wyper said.
“We look forward to contributing our expertise and capital to the construction and future operation of Louisiana LNG and are highly energized to continue supporting the development of critical North American LNG infrastructure with global impact.”
Strengthening Woodside’s Global LNG Position
The Louisiana LNG development represents a strategic expansion of Woodside’s global LNG footprint, traditionally concentrated in Western Australia. As global demand for LNG remains resilient, particularly in Asia and Europe, Woodside is positioning itself to capitalize on both geographical diversification and evolving market dynamics.
With the Scarborough Energy Project in Australia targeting first cargo in late 2026, and the Pluto Train 2 expansion progressing in tandem, Woodside’s combined LNG portfolio is poised to deliver significant new volumes to international markets in the second half of the decade.
By securing early-stage financing from Stonepeak, Woodside is effectively preserving its balance sheet strength while enabling timely execution of capital-intensive infrastructure projects. This aligns with Woodside’s stated commitment to disciplined capital allocation and delivering competitive shareholder returns.
Moreover, by entering the U.S. LNG sector—currently the world’s largest and fastest-growing LNG export hub—Woodside gains strategic access to North American gas resources, flexible shipping options, and proximity to key transatlantic markets.
Louisiana LNG: A Project of Global Significance
The Louisiana LNG project, located on the Gulf Coast of the United States, is positioned to become a significant player in the next generation of American LNG export terminals. The site benefits from proximity to prolific U.S. shale gas basins and established pipeline networks, as well as deepwater port access, making it logistically and economically advantageous.
As global LNG demand continues to rise, driven by energy security concerns, coal-to-gas switching, and seasonal price arbitrage opportunities, projects like Louisiana LNG are seen as essential to ensuring supply flexibility and market responsiveness.
Importantly, the project is also being developed with a focus on lower-carbon operations, including emissions reduction technologies and energy efficiency enhancements, aligning with both U.S. regulatory expectations and Woodside’s own climate commitments.
Enhancing Shareholder Returns
One of the most immediate impacts of the sell-down to Stonepeak is Woodside’s improved capacity to return value to shareholders. The USD 1.9 billion received at closing bolsters liquidity and could support share buybacks, dividends, or reinvestment into other high-return projects.
By offloading 40% of its exposure while retaining a majority stake and operatorship, Woodside achieves a balance between risk sharing and strategic control. This transaction structure allows the company to focus on execution while benefiting from Stonepeak’s financial and commercial support.
The influx of upfront capital also mitigates project risk and preserves cash for use in other capital-intensive projects already in the pipeline, including Scarborough and Trion, Woodside’s offshore oil development in the Gulf of Mexico.
