Woodside to divest 40% stake in Louisiana LNG project to Stonepeak

Woodside has signed a binding statement to merchantability a 40% involvement successful Louisiana LNG (liquefied earthy gas) infrastructure successful the Gulf Coast LNG corridor to Stonepeak, a planetary concern firm.

This statement marks a important measurement for Woodside, reducing its superior expenditure (capex) and enhancing the project's attractiveness to imaginable equity partners.

Stonepeak volition lend $5.7bn towards the project's capex, providing important fiscal backing.

This concern covers the three-train, 16.5 cardinal tonnes per annum (mtpa) instauration improvement effectual from 1 January 2025, with accelerated contributions successful 2025 and 2026.

The transaction involves Stonepeak contributing 75% of the capex successful 2025 and 2026, with the remainder funded successful consequent years.

The project, situated successful adjacent proximity to earthy state resources and nonstop entree to the US Gulf, boasts a full permitted capableness of 27.6mtpa and is nearing a last concern determination (FID).

Woodside CEO Meg O’Neill said: “We are precise pleased to person Stonepeak articulation america successful Louisiana LNG, fixed their demonstrated way grounds investing successful US state and LNG infrastructure crossed LNG facilities, LNG carriers, and floating retention and regasification units.”

Woodside volition proceed to run the task aft completion of the transaction.

Construction is nether way, with Bechtel arsenic the engineering, procurement and operation (EPC) contractor.

“We are pleased with the beardown level of involvement from counterparties and customers successful Louisiana LNG. We volition proceed advancing discussions with further imaginable partners targeting an equity sell-down of astir 50% successful the integrated project," O’Neill added.

“As we person demonstrated with our Scarborough and Pluto Train 2 Project successful Australia, the summation of an infrastructure spouse unlocks worth and paves the mode for different strategical equity partners."

Woodside Energy is reportedly successful discussions with respective imaginable partners to merchantability stakes, with imaginable buyers including Tokyo Gas, JERA and Saudi Aramco-backed MidOcean Energy.

Stonepeak volition clasp 40% equity successful Louisiana LNG Infrastructure (InfraCo), portion Woodside's Louisiana LNG (HoldCo) retains 60%.

InfraCo, operated by Woodside, volition negociate the EPC statement and ain the liquefaction infrastructure upon FID.

The concern is supported by a semipermanent liquefaction tolling statement betwixt InfraCo and HoldCo featuring competitory tolling interest terms, with the second to negociate state proviso and LNG offtake.

Despite Stonepeak's 40% equity interest, its superior publication is little owed to the clip worth of wealth adjustment.