Woodside’s Louisiana LNG Project Faces Possible Delay as Partner Talks Continue

Woodside Energy (OTC: WOPEY) may delay its final investment decision (FID) on the Louisiana LNG project to Q2 2025 as negotiations to sell 50% of the project continue, CEO Meg O’Neill told Reuters. Initially set for Q1, the decision depends on securing partners, with potential buyers including Tokyo Gas, JERA, and MidOcean Energy, backed by Saudi Aramco.

The 27.6 million metric ton per annum facility in Lake Charles, Louisiana, is estimated to cost $16 billion for its first phase. Woodside plans to retain 8 million tons annually to enhance its Atlantic trading portfolio, shifting from long-term direct sales to a more flexible trading strategy. Unlike traditional 20-year offtake agreements, Woodside offers shorter contracts at higher rates, catering to evolving market demands.

Interest in the fully permitted project remains strong, thanks to an engineering procurement and construction (EPC) contract with Bechtel. Woodside will continue sourcing LNG from Commonwealth LNG and Mexico Pacific LNG but remains focused on its Louisiana project. O’Neill confirmed Woodside won’t invest in gas production for the facility, opting instead to purchase supplies from various producers. The company is also finalizing engineering details for the pipeline that will deliver gas to the plant.

Meanwhile, in Trinidad and Tobago, fiscal challenges complicate the development of Woodside’s deepwater Calypso gas discovery. The Trinidadian government is eager for gas production to support its Atlantic LNG facility and petrochemical industries. O’Neill acknowledged the government’s willingness to find a path forward but emphasized the complexities of the project.

With shifting global energy demands, Woodside's flexible LNG strategy could position it as a key player in the evolving market.