Woodside Makes FID on Louisiana LNG Project

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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Woodside Energy Group (NYSE:WDS) (Perth, Australia) said Tuesday it made a final investment decision (FID) on the Louisiana LNG facility, with the first batch of super-cooled natural gas available for exports by 2029.

Woodside renamed the facility after it completed its buyout of liquefied natural gas (LNG) developer Tellurian in October. It previously had been named Driftwood LNG. Louisiana LNG already has the permits necessary for the start of construction at the facility planned for Lake Charles, Louisiana. 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.

Phase I would be able to export as much as 1.5 billion cubic feet of liquefied natural gas per day (Bcf/d). Once fully completed, the facility could deliver as much as 2.2 Bcf/d of gas in the liquid form.

"Louisiana LNG is a game-changer for Woodside, set to position our company as a global LNG powerhouse and enable us to deliver enduring shareholder returns," Woodside Chief Executive Officer Meg O'Neill said.

The U.S. emerged as the world leader in LNG exports in 2022, supported by its vast natural gas resources. President Donald Trump has vowed to capitalize on that dominance by pressing for more. His predecessor, Joe Biden, suspended new permits for LNG while his administration studied the emissions up and down the supply chain.

Natural gas is composed largely of methane, a greenhouse gas with a warming potential far greater than carbon dioxide. A climate-change skeptic, Trump reversed Biden's order, which was suspended by the courts, through executive action in January.

Though Louisiana LNG was already sanctioned through the efforts by Tellurian, O'Neill said the facility marked a new phase for U.S.-based projects.

"As the largest single foreign direct investment in Louisiana's history, Louisiana LNG will also be the first greenfield U.S. LNG project to go to final investment decision since July 2023," O'Neill added.

Companies need a special permit to send LNG to countries without a U.S. free-trade agreement and how those agreements would hold up to Trump's policy of imposing import taxes on nearly every U.S. trading partner is uncertain.

In the U.S. market, Woodside said it has an arrangement that means it can defer tariff payments until each train, or liquefaction unit, is completed, however.

The U.S. Department of Energy Department forecasts that LNG exports will average 14 Bcf/d this year, though data from IIR Energy show volumes have already surpassed that. Volumes shipped out last month averaged 16.1 Bcf/d, compared with an average of 12.2 Bcf/d during the same period last year.

That comes even as feed gas remains somewhat suppressed due to regular seasonal maintenance on midstream networks. A gloomy global macroeconomic outlook suggests supplies could outstrip demand, however.

Woodside last week reported first-quarter revenue of US$3.32 billion represented a 5% decline from the prior quarter, which the company blamed on lower production and lower commodity prices.

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 validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).