Woodside has finalized a revised lump-sum turnkey engineering, procurement, and construction (EPC) agreement with Bechtel for the development of Louisiana LNG, a three-train project with a 16.5 million tonnes per annum capacity.
Bechtel, having worked on the site since its acquisition, will continue to operate under a limited notice to proceed (LNTP) outlined in the updated EPC contract. This LNTP allows ongoing site construction and commits to securing key materials and services necessary for the foundation development of the project.
Woodside CEO Meg O’Neill stated that the EPC contract signing and the continuation of engineering and construction activities marked a significant milestone in the Louisiana LNG development.
“Louisiana LNG is strategically positioned to meet the growing global LNG demand while delivering shareholder value within our capital allocation framework,” O’Neill said. “We’ve made swift progress — completing the acquisition, securing competitive EPC pricing for all three trains, and attracting strong interest from potential project partners in our open data room.”
She further emphasized that Louisiana LNG is an advantageous project, already fully permitted with Bechtel as the EPC contractor. The competitive pricing and schedule certainty secured under the contract further strengthen its position in a market with competing projects facing uncertainties.
Woodside aims to be ready for a final investment decision (FID) by the first quarter of 2025. From December to the end of Q1 2025, total expenditures for Louisiana LNG are projected to be up to $1.3 billion, which is part of the overall estimated cost for the foundation development.
The estimated forward cost for the foundation development remains between $900 and $960 per tonne, consistent with the range provided at the time of acquisition.
Louisiana LNG is an under-construction LNG production facility and export terminal located in Calcasieu Parish, Louisiana. The project offers a scalable, high-quality development opportunity with a total permitted capacity of 27.6 million tonnes per annum. It represents a major growth prospect for Woodside, expanding its US LNG position and enhancing its ability to serve global customers while capturing marketing optimization opportunities across both the Atlantic and Pacific Basins.
