Stonepeak to Invest $5.7 Billion in Woodside’s Louisiana LNG Project

Australia’s Woodside Energy has reached a deal to sell 40% in its Louisiana LNG project with Stonepeak, under which the infrastructure investment firm will provide $5.7 billion towards the expected capital expenditure for the foundation development of the LNG export facility.

The transaction provides “validation of project quality and increasing attractiveness of the project to other potential equity partners,” Woodside said in a statement on Monday.

Under the deal, Stonepeak will provide $5.7 billion towards the expected capital expenditure for the foundation development of Louisiana LNG on an accelerated basis, contributing 75% of project capital expenditure in both 2025 and 2026.

The entry of a partner in the project boosts Louisiana LNG’s economics and Woodside’s cash flow profile, said the Australian energy giant, which last year acquired the project for $1.2 billion when it completed the deal to buy struggling U.S. firm Tellurian and its U.S. Gulf Coast project Driftwood.

Woodside has renamed the Driftwood LNG development opportunity Woodside Louisiana LNG.

Now, the deal with Stonepeak “significantly reduces Woodside’s capital expenditure profile and is a material step towards readiness for a final investment decision,” the Australia-based company said.

“We are very pleased to have Stonepeak join us in Louisiana LNG, given their demonstrated track record investing in US gas and LNG infrastructure across LNG facilities, LNG carriers, and floating storage and regasification units,” said Woodside CEO Meg O’Neill.

James Wyper, Stonepeak Senior Managing Director and Head of US Private Equity, commented,

“With the need to bring significant additional capacity online over the coming years, we have strong conviction in the critical role Louisiana LNG will play in the US LNG export market.”

“The project represents a compelling opportunity to invest in a newbuild LNG export facility nearing FID approval with an attractive risk reward profile and best-in-class partners in both Bechtel and Woodside to construct and operate the asset.”

By Tsvetana Paraskova for Oilprice.com

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