
Stonepeak Partners LP has signed an agreement to become a 40 percent partner in Woodside Energy Group Ltd.’s Louisiana LNG project, committing a cumulative investment of $5.7 billion.
“The transaction significantly reduces Woodside’s capital expenditure profile and is a material step towards readiness for a final investment decision”, Woodside said in an online statement. The Australian oil and gas exploration and production company previously said it expects to make a final investment decision this quarter.
The under-construction project in Calcasieu Parish, Louisiana, on the United States Gulf Coast has a permitted liquefaction capacity of 27.6 million metric tons per annum (MMtpa). Woodside took over the project, then called Driftwood LNG, when it acquired Tellurian Inc. for about $1.2 billion last year.
“Under the transaction, Stonepeak will provide $5.7 billion towards the expected capital expenditure for the foundation development of Louisiana LNG on an accelerated basis, contributing 75 percent of project capital expenditure in both 2025 and 2026”, Woodside said. The foundation development targets to realize 16.5 MMtpa of the permitted capacity.
“This enhances the project economics and Woodside’s cash flow profile ahead of revenues from Woodside’s Scarborough Energy Project in Australia, strengthening the capacity for shareholder returns”, Woodside added. “The remainder of Stonepeak’s committed capital will be funded in subsequent years”.
Woodside kept the estimated forward cost for the foundation development at $900-960 per metric ton. On December 5, 2024, Woodside said it had signed a revised turnkey engineering, procurement and construction contract with Bechtel Corp. and that the new contract represents competitive pricing.
The transaction with Stonpeak is expected to be completed in the second quarter, subject to regulatory and other customary approvals.
“We are very pleased to have Stonepeak join us in Louisiana LNG, given their demonstrated track record investing in US gas and LNG infrastructure across LNG facilities, LNG carriers, and floating storage and regasification units”, Woodside chief executive Meg O’Neill said.
“We are pleased with the strong level of interest from counterparties and customers in Louisiana LNG”, O’Neill added. “We will continue advancing discussions with additional potential partners targeting an equity sell-down of around 50 percent in the integrated project. As we have demonstrated with our Scarborough and Pluto Train 2 Project in Australia, the addition of an infrastructure partner unlocks value and paves the way for other strategic equity partners”.
James Wyper, Stonepeak senior managing director and head of private equity in the U.S., said, “With the need to bring significant additional capacity online over the coming years, we have strong conviction in the critical role Louisiana LNG will play in the US LNG export market”.
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