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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)
Summary
With multiple liquefied natural gas (LNG) plant approvals, higher amounts of U.S. LNG are being exported while domestic gas demand has risen 14% year over year.
Developers Pour Billions into new Louisiana LNG Facility
While U.S. domestic demand for natural gas swells, developers pumped billions of dollars into building a new export facility in Louisiana for liquefied natural gas (LNG).
U.S.-based Williams Companies Incorporated (Tulsa, Oklahoma) reached an agreement with Australian project developer Woodside Energy Group (Perth) to secure a 10% stake in the planned Louisiana LNG project in exchange for $1.9 billion in construction support. This is the first investment ever in LNG for Williams.
"We are excited to have Williams join us as a strategic partner in Louisiana LNG given its leadership in U.S. natural gas infrastructure and ability to add value and deliver operational benefits to enhance the project," Woodside Chief Executive Officer Meg O'Neill said Thursday.
Woodside made a final investment decision (FID) on the Louisiana LNG facility in April, with the first batch of super-cooled natural gas available for exports by 2029. Once fully completed, the facility could deliver as much as 5.2 million metric tons per annum (MTPA) of gas in the liquid form.
Woodside renamed the facility after it completed its buyout of Tellurian Incorporated last October. The plant's former name was Driftwood LNG.
Engineering firm Bechtel (Reston, Virginia) already has started engineering, procurement and construction (EPC) work on the initial three trains.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can click here for a full list of detailed reports for projects related to Louisiana LNG.
By the Numbers
While exports are advancing, demand is surging in the domestic markets as cooler temperatures descend on North America and drive-up home-heating usage. IIR Energy in its regular daily natural gas report for Thursday found domestic natural gas consumption is up 9 billion cubic feet per day (Bcf/d), or 14%, from year-ago levels, driven by the increase in residential and commercial demand.
The amount of feed gas running to the eight operational terminals for LNG exports, meanwhile, reached 17.2 Bcf/d, about 1.2 Bcf/d above what the government expects to be the average for the year.
For the household consumer, the gas market may be creating financial pressures given the rise in commodity prices, but U.S. natural gas is supporting energy security in the European Union at a time when the bloc is working to do away with piped gas and LNG deliveries from Russia.
That comes as Norway, one of the main natural gas suppliers to the EU apart from the United States, reported a downturn in production. Preliminary government data through September show gas production over the first nine months of 2025 down about 4% from the same period last year.
Key Takeaways
Summary
With multiple liquefied natural gas (LNG) plant approvals, higher amounts of U.S. LNG are being exported while domestic gas demand has risen 14% year over year.
Developers Pour Billions into new Louisiana LNG Facility
While U.S. domestic demand for natural gas swells, developers pumped billions of dollars into building a new export facility in Louisiana for liquefied natural gas (LNG).
U.S.-based Williams Companies Incorporated (Tulsa, Oklahoma) reached an agreement with Australian project developer Woodside Energy Group (Perth) to secure a 10% stake in the planned Louisiana LNG project in exchange for $1.9 billion in construction support. This is the first investment ever in LNG for Williams.
"We are excited to have Williams join us as a strategic partner in Louisiana LNG given its leadership in U.S. natural gas infrastructure and ability to add value and deliver operational benefits to enhance the project," Woodside Chief Executive Officer Meg O'Neill said Thursday.
Woodside made a final investment decision (FID) on the Louisiana LNG facility in April, with the first batch of super-cooled natural gas available for exports by 2029. Once fully completed, the facility could deliver as much as 5.2 million metric tons per annum (MTPA) of gas in the liquid form.
Woodside renamed the facility after it completed its buyout of Tellurian Incorporated last October. The plant's former name was Driftwood LNG.
Engineering firm Bechtel (Reston, Virginia) already has started engineering, procurement and construction (EPC) work on the initial three trains.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can click here for a full list of detailed reports for projects related to Louisiana LNG.
By the Numbers
- Williams Companies secured a 10% stake in the planned Louisiana LNG project
- Williams will receive $1.9 billion in construction support
- The facility could deliver as much as 5.2 million metric tons per annum of LNG upon completion
While exports are advancing, demand is surging in the domestic markets as cooler temperatures descend on North America and drive-up home-heating usage. IIR Energy in its regular daily natural gas report for Thursday found domestic natural gas consumption is up 9 billion cubic feet per day (Bcf/d), or 14%, from year-ago levels, driven by the increase in residential and commercial demand.
The amount of feed gas running to the eight operational terminals for LNG exports, meanwhile, reached 17.2 Bcf/d, about 1.2 Bcf/d above what the government expects to be the average for the year.
For the household consumer, the gas market may be creating financial pressures given the rise in commodity prices, but U.S. natural gas is supporting energy security in the European Union at a time when the bloc is working to do away with piped gas and LNG deliveries from Russia.
That comes as Norway, one of the main natural gas suppliers to the EU apart from the United States, reported a downturn in production. Preliminary government data through September show gas production over the first nine months of 2025 down about 4% from the same period last year.
Key Takeaways
- Woodside expects the first batch of super-cooled natural gas to be available for exports by 2029
- Engineering firm Bechtel already has started EPC work
- Demand is surging in both the domestic and global markets
