Woodside Energy has approved the execution of an ambitious LNG project in Louisiana, with an initial capacity of 16.5 million tons per year. This final investment decision (FID) establishes commercial production by 2029 and reinforces the Australian company’s international expansion, which will consolidate more than 5% of the world’s supply of liquefied natural gas over the next decade.
Robust financing and projected return
The development contemplates a total estimated capital expenditure of US$17.5 billion, of which Woodside will cover approximately US$11.8 billion. The remainder will be financed by Stonepeak, the project’s infrastructure partner, which will contribute US$5.7 billion in an accelerated phase. With this scheme, an internal rate of return of over 13% and a payback period of only seven years is estimated.
[post_relacionado]The infrastructure will include three liquefaction trains with an option to expand to five, allowing for a total capacity of up to 27.6 Mtpa. At full operation, the complex will generate approximately $2 billion per year in net operating cash flow in the 2030s. Together with its assets in Australia, Woodside projects to achieve more than $8 billion in global net operating cash flow per year.
Geographic leverage and market access
The Louisiana location offers key advantages: access to low-cost natural gas, established interstate infrastructure, and maritime connectivity that will allow it to supply both the Pacific and Atlantic. This flexibility strengthens Woodside’s business model and expands its ability to respond to energy demand in Asia and Europe.
Despite its expansion, Woodside will maintain its emissions reduction goals. emissions reduction reduction targets. The company will not change its climate baselines following this decision, maintaining a disciplined investment approach aligned with environmental and governance criteria.
Economic, local and global impact of the LNG project in Louisiana.
Construction is expected to generate nearly 15,000 jobs in the U.S., making it the largest foreign investment in the world, making it the largest single foreign direct investment foreign direct investment in the history of the state of Louisiana. This step also represents the first greenfield LNG project to receive final approval in the U.S. since July 2023.
With this strategic move, Woodside, in addition to expanding its energy footprint, also reinforces its role as a central player in the global supply of liquefied natural gas.
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Source and photo: Woodside