Woodside Expecting Boost in Sales Volumes

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

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Summary

New projects coming onstream for Australian energy major Woodside are expected to lift sales volumes during the early part of the 2030s. The company, however, said it was cutting costs to become more efficient.

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Oil, LNG Outlook Up

Australian energy company Woodside said Thursday that new developments, including LNG in the U.S. market, are expected to boost its growth in sales volumes by more than 30% by 2032.

Woodside's footprint is big. Industrial Info is tracking hundreds of projects and plants across the globe that are associated with the Australian energy major. On Thursday, the company said its Scarborough natural gas project is nearly completed and could deliver its first cargo of liquefied natural gas (LNG) before the year is out.

Readers have access to a detailed plant profile, which finds the project could be completed yet this year. Elsewhere in Mexico, the company said its Trion floating production unit is expected to reach first oil by next year.

A profile from Industrial Info finds Woodside working alongside a division of Petroleos de Mexicanos, or Pemex, on a grassroots installation in the deep waters off the coast of Mexico. The unit will be able to process 100,000 barrels of oil per day (bpd) and 145 million cubic feet of gas per day (MMSCFD).

In the U.S. market, meanwhile, its Louisiana LNG terminal could be delivering super-cooled gas by 2029. Louisiana LNG is already sanctioned for deliveries. If completed as expected, it would have an export potential of about 3.8 Bcf/d of gas in the liquid form, data show.

"Together with our base business, these projects are expected to support sales volume growth of more than 30% to approximately 280 million barrels of oil equivalent in 2032, and generate more than US$40 billion of adjusted operating cash flow from 2027 to 2032," said Liz Westcott, the chief executive officer and managing director.

Woodside last year sold off a stake 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.

In October, meanwhile, Woodside signed a long-term sales and purchase agreement with QatarEnergy to offer 3 metric tons per annum (MTPA) from the Louisiana LNG terminal, which Westcott said was a significant step in building up the project's long-term customer base.

QatarEnergy is under pressure from conflict simmering in the Middle East. Two of its export plants for LNG were damaged during the height of the fighting this summer, leading to a hefty repair bill and significant delays in LNG deliveries.

In its third quarter presentation in October, the company said it realized an LNG price of $84 per barrel of oil equivalent, a 27% increase from second-quarter levels. Production was up 12%, and the company reported a 2% increase in operating revenue compared to the second quarter.

That's not enough for Woodside to express optimism about its future spending, however. Westcott said Thursday the company was looking to extract more value from its portfolio.

"We are targeting US$400 million of annual structural cost reductions from 2028, improving operational efficiency and productivity, and actively managing the portfolio to concentrate capital where it earns the highest returns," she said.

Elsewhere, the Bloomberg news agency reported Thursday that Woodside is planning to cut 11% of its global workforce of around 4,700 staff as part of a drive to improve efficiencies.

Key Takeaways

• Oil, LNG to lift volumes for Woodside in the 2030s
• The company's LNG is offsetting supply disruptions in the Middle East

By the Numbers

• 11% staff reduction from Australian energy major Woodside
• 27% increase in realized LNG prices from the second quarter

About Industrial Info Resources

Industrial Info Resources (IIR) 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 verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).