Woodside Targets Stake Sale in $17.5B Louisiana LNG Project to Cut Risk, Attract Partners

Woodside Energy, Australia’s largest natural gas producer, plans to sell a 20%-30% stake in its wholly owned holding company for the $17.5 billion Louisiana LNG project. The move aims to reduce financial risk and bring its total ownership to around 50%, according to Chief Operating Officer Liz Westcott, who spoke at the Macquarie Australia Conference.

The decision follows last week’s final investment approval for Louisiana LNG, which has seen rising interest from potential partners since the greenlight. Westcott confirmed that discussions with interested parties are underway, noting that Woodside is “keen to move along” while ensuring strategic alignment.

The project, expected to deliver first gas in 2029, is projected to generate $2 billion in annual net operating cash throughout the 2030s. Woodside anticipates a 13% internal rate of return and a seven-year payback period, supported by continued global demand for liquefied natural gas, especially from Europe and Asia, and a U.S. administration favoring fossil fuel development.

Earlier, Woodside secured a $5.7 billion investment from Stonepeak in exchange for a 40% stake in the project’s infrastructure entity. Analysts have welcomed the plan for additional divestment, saying it validates the project’s value and helps de-risk Woodside’s exposure.

The stake sale aligns with Woodside’s capital management strategy, optimizing its LNG portfolio while maintaining long-term value. As competition intensifies in the global LNG market, Woodside's strategic partnerships could prove critical to maintaining its leadership in the sector.

By strategically lowering its ownership while retaining a significant stake, Woodside is positioning itself to benefit from strong LNG market fundamentals while managing development risk effectively.