Woodside greenlights Louisiana LNG project, first LNG production anticipated in 2029

Woodside has announced a last concern determination to make the Louisiana LNG (liquefied earthy gas) project, with archetypal LNG accumulation anticipated successful 2029.

The Louisiana LNG task comprises 3 trains with a full capableness of 16.5 cardinal tonnes per annum (mtpa).

It volition alteration Woodside to proviso astir 24mtpa from its planetary LNG portfolio successful the 2030s, accounting for much than 5% of the worldwide LNG supply.

The installation besides has the imaginable for further expansion, with 2 further LNG trains, and is afloat permitted for a full capableness of 27.6mtpa.

Woodside expects the Louisiana LNG task to make important currency travel and make semipermanent worth for its shareholders.

The task is projected to present an interior complaint of instrumentality supra 13% and a payback play of 7 years, surpassing Woodside's superior allocation benchmarks.

At afloat capacity, the task is expected to output astir $2bn (A$3.12bn) of yearly nett operating currency successful the 2030s.

It volition lend to Woodside's people of generating much than $8bn of yearly nett operating currency from its planetary portfolio successful the aforesaid period.

Woodside CEO Meg O’Neill said: “Louisiana LNG is simply a game-changer for Woodside, acceptable to presumption our institution arsenic a planetary LNG powerhouse and alteration america to present enduring shareholder returns.

“This world-class task is simply a compelling and de-risked investment. It leverages Woodside’s proven strengths successful task execution, operational excellence, selling and lawsuit relationships to connection important currency procreation and thrust semipermanent shareholder value.

“We person secured prime partners and are present acceptable to instrumentality a last concern decision. This determination is different objection of Woodside’s disciplined concern approach, with the task delivering returns that transcend our superior allocation framework.”

The forecasted full superior expenditure (capex) for the Louisiana LNG project, including pipeline and absorption reserve, is estimated astatine $17.5bn.

Woodside's stock of the forecasted full capex amounts to $11.8bn.

Stonepeak, an capitalist successful Louisiana LNG Infrastructure, volition lend $5.7bn towards the capex connected an expedited basis, covering 75% of the costs successful 2025 and 2026.

In a related development, Woodside precocious secured proviso agreements with Uniper done Woodside Energy Trading Singapore.

The woody includes the proviso of 1mtpa of LNG from the Louisiana LNG task and up to 1mtpa from its planetary portfolio.

"Woodside greenlights Louisiana LNG project, archetypal LNG accumulation anticipated successful 2029" was primitively created and published by Offshore Technology, a GlobalData owned brand.