Woodside Energy Sells 10% Stake in Louisiana LNG Project to Williams for $1.9 Billion Boost

Australia’s Woodside Energy (ASX:WDS) has agreed to sell a 10% stake in its Louisiana LNG project to U.S. pipeline operator Williams Companies (NYSE:WMB), marking a major step in Woodside’s U.S. expansion strategy. The deal, valued at approximately $1.9 billion, strengthens both companies’ positions in the growing global liquefied natural gas (LNG) market.

Under the agreement, Williams will also take an 80% stake and operatorship in the Driftwood Pipeline—a key infrastructure asset connecting gas supplies to the project—for $250 million. Including capital reimbursements, total proceeds to Woodside will reach $378 million. The transaction marks Williams’ first entry into the LNG sector, aligning with its “wellhead-to-water” growth strategy that aims to extend its role from natural gas transport to export markets.

As part of the collaboration, Williams will handle construction of the Line 200 pipeline and will receive 10% of the project’s LNG offtake, equivalent to 1.6 million tonnes per year. This strategic partnership not only enhances operational expertise but also optimizes Woodside’s project costs. Following the deal, Woodside’s capital expenditure for the Louisiana LNG project has been reduced from $11.8 billion to $9.9 billion, signaling improved financial efficiency.

Woodside CEO Meg O’Neill highlighted Williams’ deep experience in gas infrastructure as a key advantage for the project’s development. Meanwhile, Williams CEO Chad Zamarin emphasized that the partnership supports the company’s integrated approach to connecting production basins to global LNG demand.

The market responded positively to the announcement, with Woodside shares rising nearly 4% to A$24.11 as of 00:54 GMT. The Louisiana LNG project, based near Lake Charles, is targeting first gas production by 2029, positioning both companies to benefit from surging global demand for LNG and the accelerating energy transition.