Woodside Secures Strategic $5.7 Billion Investment from Stonepeak to Advance Louisiana LNG Project
Woodside Energy has taken a significant step forward in the development of its U.S.-based Louisiana LNG Project by entering into a binding agreement with Stonepeak, a leading global infrastructure investment firm. The agreement will see Stonepeak acquire a 40% equity interest in Louisiana LNG Infrastructure LLC (InfraCo), a key component of Woodside’s broader LNG development strategy in North America.
This partnership marks a major milestone for the Australian energy company, which has sought to reduce upfront capital exposure while retaining operational leadership and long-term growth potential. Under the terms of the agreement, Stonepeak will contribute $5.7 billion toward the capital expenditure of the project’s foundational phase—specifically for the construction and development of a new liquefied natural gas (LNG) export facility located in Louisiana.
The investment comes at a critical time as the global LNG market undergoes a phase of robust demand growth, driven by the transition from coal to cleaner energy sources, the energy security imperatives following geopolitical disruptions, and increasing demand for LNG in Asia and Europe. By securing a substantial financial partner with deep infrastructure experience, Woodside is not only validating the economic attractiveness of the Louisiana LNG project but also boosting its ability to make a final investment decision (FID) with confidence in the near future.
Strengthening Project Viability with Strategic Capital
Woodside has confirmed that the capital provided by Stonepeak will significantly ease the company’s expenditure obligations in the short term. According to the agreement, Stonepeak will shoulder 75% of the projected capital expenditures in both 2025 and 2026, providing an accelerated injection of funds when the bulk of construction activities are expected to take place.
This structured capital infusion will improve project economics and enhance Woodside’s financial agility, especially as it balances concurrent development of other major assets—most notably the Scarborough Energy Project in Australia. With Stonepeak taking on a leading role in the early development costs, Woodside is well-positioned to maintain liquidity, uphold credit strength, and potentially return more capital to shareholders even before revenues begin flowing from the new LNG asset.
Meg O’Neill, Woodside’s Chief Executive Officer, underscored the strategic importance of the deal:
“We are very pleased to welcome Stonepeak as a key partner in the Louisiana LNG Project. Their proven track record in investing across LNG facilities, floating storage units, and maritime LNG logistics makes them a natural fit for this world-class infrastructure project.”
She added that Stonepeak’s early commitment was the result of a competitive process that attracted multiple global players, thereby further validating the project’s fundamentals. “The deal significantly reduces our capital exposure and brings forward capital that strengthens our near-term cash flow and distribution potential,” O’Neill noted.
A Robust Platform for Long-Term LNG Supply
The Louisiana LNG project is designed as a large-scale LNG export terminal with a planned capacity of 16.5 million tonnes per annum (MTPA) in its initial phase. The project will include three liquefaction trains, supported by common-user facilities and port infrastructure. These assets will be constructed under a lump sum, turnkey engineering, procurement, and construction (EPC) contract with Bechtel, a globally recognized leader in energy infrastructure development.
Bechtel’s involvement, along with regulatory approvals already secured for key project elements, positions Louisiana LNG as one of the most advanced greenfield LNG export projects in the United States. Woodside expects to leverage its experience in managing complex energy projects—such as Pluto LNG and the Scarborough project—to oversee Louisiana LNG’s execution and ramp-up.
The project structure will see Stonepeak and Woodside jointly owning InfraCo, the legal entity that will oversee the construction and operation of the liquefaction facilities. Woodside will retain a 60% stake and operational control of InfraCo, while Stonepeak holds the remaining 40%.
InfraCo is backed by a long-term liquefaction tolling agreement with Louisiana LNG LLC (HoldCo), which is 100% owned and operated by Woodside. Under this arrangement, HoldCo will manage gas procurement and the sale of LNG produced by the facility, ensuring Woodside maintains full commercial control of the product value chain.
James Wyper, Senior Managing Director and Head of U.S. Private Equity at Stonepeak, expressed strong confidence in the project:
“With the global push to increase LNG export capacity and ensure energy security, Louisiana LNG represents a compelling, de-risked investment. The project is nearing final investment decision with best-in-class partners in Woodside and Bechtel, and offers a strong risk-reward profile in a key growth market.”
Financial Mechanics and Timeline
Stonepeak’s $5.7 billion investment will be deployed in a structured manner, with the majority committed during the 2025–2026 window. This front-loaded funding model results in a lower total contribution over time than their 40% equity stake would suggest on a nominal basis—reflecting the time value of money and the benefit of early capital deployment.
In the case of project cost overruns, Woodside’s HoldCo will absorb any incremental capital requirements. This structure provides cost certainty for Stonepeak, while incentivizing Woodside to deliver the project within the agreed budget.
Woodside estimates the forward capital cost of the Louisiana LNG foundation project, from December 2024 onwards, to range between $900 and $960 per tonne. This estimate includes EPC costs, performance-based contractor incentives, owner’s costs, allowances, and contingency—but does not account for pipeline development costs or HoldCo-specific expenditures.
Completion of the Stonepeak transaction is subject to several standard closing conditions, including FID for the Louisiana LNG project, regulatory clearances, and other customary approvals. The agreement has an effective date of January 1, 2025, with formal closing targeted for the second quarter of 2025. Upon closure, Stonepeak is expected to make an initial capital payment of approximately $2 billion to cover its share of expenditures incurred between the effective date and the transaction close.
Future Growth and Strategic Sell-down
While the Stonepeak deal covers a significant portion of project financing, Woodside has signaled its intention to further reduce its overall exposure by divesting additional equity in the integrated project. According to CEO O’Neill, the company is in advanced discussions with other potential partners and aims to sell down approximately 50% of its total interest in the Louisiana LNG venture.
This approach mirrors Woodside’s capital strategy for the Scarborough and Pluto Train 2 developments, where infrastructure partnerships helped unlock shareholder value and reduce funding pressure while retaining project control and offtake benefits.
“We continue to see strong interest from potential counterparties and customers alike,” said O’Neill. “The Louisiana LNG project is emerging as a key enabler in global energy transition, providing reliable and competitively priced LNG to international markets over multiple decades.”
Advisers and Closing Remarks
To support the transaction, Woodside engaged RBC Capital Markets and Evercore as financial advisers, with Norton Rose Fulbright serving as legal counsel. These partners played an instrumental role in navigating the deal through the highly competitive landscape of energy infrastructure investment.
This landmark partnership between Woodside and Stonepeak sends a strong signal to global markets about the viability and attractiveness of new-build LNG infrastructure in the United States. With key regulatory and commercial pieces falling into place, the Louisiana LNG project is well-positioned to proceed toward a final investment decision and eventual construction commencement.
As global demand for natural gas continues to grow—driven by decarbonization, industrialization, and the urgent need for reliable baseload energy—projects like Louisiana LNG will play a vital role in meeting the world’s energy needs while supporting the transition to a lower-carbon future.
