Woodside Claims Progress on Louisiana LNG

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Written by Daniel Graeber for IIR Energy Intelligence (Sugar Land, Texas)

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Summary

Louisiana LNG could be exporting from the U.S. before the end of the decade, the Woodside Energy said. Questions remain over the longevity of what looks to be a U.S. LNG boom, however.

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Louisiana LNG is About 20% Complete

Following the introduction of feedgas into the Golden Pass LNG facility in Texas, Australian energy company Woodside Energy Group Limited said its Louisiana project could be completed before the end of the decade.

In its fiscal report for the fourth quarter, Woodside said it sold off interest in the Louisiana LNG facility, with U.S. gas infrastructure company Williams contributing some $1.9 billion toward the project in exchange for 10% of its expected nameplate capacity for liquefied natural gas (LNG).

"We also continued to progress our major development pipeline, with the three train foundation phase of the Louisiana LNG project reaching 22% completion at quarter end, targeting first LNG in 2029," said Liz Wescott, the company's chief executive officer.

Building on a non-binding heads of agreement arrangement from September, Turkish energy company Boru Hatları ile Petrol Tasima, better known as BOTAS, signed a nine-year agreement in December to secure a half-million metric tons per annum (MTPA) of LNG with Woodside, which has LNG facilities operating in Australia as well.

Among the handful of LNG facilities supported by the federal government since Donald Trump returned to the White House, Louisiana LNG is already sanctioned for deliveries. If completed as expected, it would have an export potential of about 5.2 MPTA.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project and Plant databases can learn more about Louisiana LNG--including capacities, investment values and necessary equipment--in a detailed project report and plant profile.

The progress report follows the start of gas deliveries to the Golden Pass facility on the Texas coast. IIR Energy in its NATGAS Today report for Wednesday showed deliveries were at around 12 million cubic feet, compared to 4.2 billion cubic feet for the Sabine Pass export facility, the largest of its kind in the United States.

Once fully completed, Golden Pass would be one of the largest LNG export facilities in the United States. Joint venture partners Exxon Mobil Corporation and Qatar Energy started preparations for commissioning last month.

Subscribers have access to a detailed project report.

By the Numbers

• 5.2 MPTA expected from Louisiana LNG
• 2029 is the expected start date
• $1.9 billion from Williams in exchange for offtake

Is There an LNG Bubble?

Trump last year put LNG at the top of his list of priorities in a strategy for energy dominance that was backed by executive orders. The world leader in LNG exports, U.S. sources have ensured energy security for a European economy looking to find resources beyond sanction-strapped Russia.

But following Trump's annexation threats over NATO ally Greenland, a Danish territory, a political party in Germany suggested a complete break from U.S.-sourced LNG because of the emerging fissures in the historic European relationship with the U.S. Germany ranks in the Top 5 for European imports of U.S. LNG.

Trump on his return to the White House last year suggested European economies could take in billions of dollars in U.S. LNG, though an emerging market glut and geopolitical issues could complicate that effort.

Teresa Ribera, the competition chief for the European Union, was quoted by Bloomberg as saying Tuesday that the bloc was still too reliant on a single supplier of natural gas.

"We know that we cannot rely on Russian gas, and that we should pay attention not to rely too much on American gas," she said.

Norway is among the major alternative suppliers of natural gas to the European economy, though production is lower than U.S. output. Norway reported total gas sales averaged around 12.9 billion cubic feet per day (Bcf/d) in December. On Wednesday, the total amount of feedgas running to U.S. LNG exports was around 19.4 Bcf/d.

Key Takeaways

• Australia's Woodside makes progress on Louisiana LNG
• Europe growing wary of dependence on U.S.-sourced LNG
• Announcements follow early feedstock supplies to Golden Pass LNG

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR News Intelligence) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 250,000 current and future projects worth $30.2 trillion (USD).