Australian Energy Corporation Greenlights $17.5 Billion LNG Project in Louisiana

Woodside, the Australian energy giant, is moving forward with a $27 billion (US$17.5 billion) liquefied natural gas (LNG) project in Louisiana, United States.

In response to this news, Woodside shares increased by 1.47 percent, reaching 20.66 on the Australian Stock Exchange (ASX) on April 29.

Woodside anticipates that the project will yield approximately 16.5 million tonnes per annum (mtpa) of gas by 2029, generating $2 billion in cash annually starting in the 2030s.

By the 2030s, the company aims to ramp up production to 24 mtpa, which will contribute to 5 percent of the total global LNG supply.

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Woodside’s CEO Meg O’Neill referred to this announcement as a “historic moment” for the company.

“Louisiana LNG represents a game-changer for Woodside, positioning us to become a global LNG powerhouse and ensuring lasting returns for our shareholders,” she remarked.

“This world-class project is an attractive and low-risk investment. It capitalizes on Woodside’s strengths in project execution, operational excellence, marketing, and customer relations, ensuring significant cash flow and long-term shareholder value.”

O’Neill stated that Woodside has secured high-quality partners and is prepared to make the final investment decision.

“Incorporating Louisiana LNG into our established Australian LNG operations allows Woodside to maintain a balanced and resilient portfolio, merging long-life, flexible LNG assets with high-return oil assets,” she added.

O’Neill highlighted that the project takes advantage of abundant low-cost gas resources in the U.S. and boasts an asset lifespan exceeding 40 years.

“It also benefits from established interstate and intrastate gas supply networks. The marketing prospects Louisiana LNG presents across the Pacific and Atlantic Basins leverage Woodside’s proven marketing capabilities while augmenting our established presence in Asia,” she stated.

This will enable Woodside to better serve global customers and fulfill the rising energy demand.

“This supply can cater to the strong, sustained demand for LNG anticipated in both Asia and Europe as these markets aim for energy security and decarbonization efforts,” O’Neill noted.

“We are encouraged by the strong interest from potential strategic partners and are progressing discussions aimed at further equity sell-downs.

This will not only decrease Woodside’s capital exposure but also expedite the value realization of Louisiana LNG, in line with our approach to the Scarborough Energy Project in Australia.”

Woodside Expresses Gratitude to the U.S. Government for Their Support

Woodside expressed appreciation to both the Trump administration and the Louisiana state government for their support of the initiative.

“As the largest single foreign direct investment in Louisiana’s history, Louisiana LNG will also mark the first greenfield U.S. LNG project to reach a final investment decision since July 2023,” O’Neill explained.

“Louisiana LNG will create around 15,000 national jobs during the construction phase. Woodside acknowledges the assistance received from both the U.S. Federal and Louisiana State governments.”

Trump Moves to Accelerate Energy Projects

Since assuming office, President Trump has sought to expedite the approval processes for energy initiatives, including those for natural gas liquids.

On his first day in office, he declared a national energy emergency to secure U.S. energy supplies and directed agencies to expedite project approvals.

“To ensure the nation’s energy supply, agencies should identify and utilize all relevant lawful emergency and other authorities available to them to speed up the completion of all authorized and appropriated infrastructure, energy, environmental, and natural resources projects within their operational purview,” states the executive order.

Following this national energy declaration, the U.S. Department of the Interior has streamlined energy permits, reducing the process to 28 days.

This applies to crude oil, natural gas, natural gas liquids, petroleum, coal, uranium, biofuels, and geothermal energy.