Woodside cites momentum on Louisiana LNG project

Woodside Energy has reached a major milestone in its flagship Louisiana LNG facility and is nearing a final investment decision on the project, according to company CEO Meg O’Neill.

Woodside Energy has reached a major milestone in its flagship Louisiana LNG facility and is nearing a final investment decision on the project, according to company CEO Meg O’Neill.

She said the sale of a 40% stake in the project to private equity firm Stonepeak includes a $5.7 billion capital commitment, providing an immediate boost to project returns while easing Woodside’s near-term capital burden.

“We are progressing at pace towards a final investment decision on Louisiana LNG,” said O’Neill, during the company’s quarterly earnings report. “This (Stonepeak) transaction strengthens Woodside’s near-term capacity for shareholder distributions and positions the project to be a major force in global LNG markets.”

The agreement was quickly followed by another landmark: a long-term LNG supply contract signed April 17 with Germany’s Uniper for up to two million tonnes per annum. “Uniper’s leadership in European energy markets makes it an ideal foundation customer,” O’Neill added.

Australia’s Woodside bought Tellurian for $1.2 billion last year to develop the 27.6 million metric tons a year Louisiana LNG project, formerly called Driftwood, in four phases to meet growing demand for gas. The first phase is expected to cost about $16 billion.

In the quarterly update, CEO Meg O’Neill said the company was “assessing the potential impacts of recent tariff announcements and potential further trade measures on Louisiana LNG.”

About 25% of Louisiana LNG’s estimated capital expenditure is tied to equipment and materials, with roughly half expected to be sourced from the United States. The project benefits from its designation as a Foreign-Trade Zone, allowing deferral of tariffs until the completion of each train.

While the Louisiana LNG project dominated the earnings call, Woodside reported strong financial and operational performance across its global portfolio for the first quarter of 2025. Quarterly revenue totaled $3.3 billion, up 13% year-over-year, driven by the ramp-up of Sangomar production and robust gas hub-linked LNG pricing. Production rose to 49.1 million barrels of oil equivalent (MMboe), an increase of 9% over Q1 2024.

The company’s Sangomar oil field off Senegal delivered 78,000 barrels per day (Woodside share) at nearly 98% reliability, offsetting weather-related production impacts at the North West Shelf and unplanned outages at Pluto LNG. In the U.S. Gulf of Mexico, Woodside reported 99.8% reliability at Shenzi and strong performance at Atlantis and Mad Dog.

“Operational excellence across our high-quality asset base remains a hallmark of our business,” O’Neill said.

Woodside reaffirmed full-year production guidance of 186–196 MMboe and maintained its capital expenditure forecast of $4.5 to $5.0 billion. Nearly half of Q1 capital spending—$901 million—was allocated to the Louisiana LNG project, with significant progress also reported on the Scarborough Energy and Trion oil projects.

Scarborough, now 82% complete, remains on track for first LNG cargo in the second half of 2026. In Texas, the Beaumont New Ammonia Project hit 90% completion, with pre-commissioning activities expected to begin in Q2.

Woodside also continues to reshape its portfolio. In March, it agreed to divest its Greater Angostura assets in Trinidad and Tobago to Perenco for $206 million. The move, combined with the company’s exits from the Namibian offshore and H2TAS hydrogen project, reflects a strategy of focusing on high-return, core developments.

On the marketing front, the company secured a 15-year LNG sales agreement with China Resources Gas International, its fourth long-term Asian contract in just over a year. In Q1, 25.4% of Woodside’s LNG volumes were sold at hub-linked pricing, delivering a 23% premium compared to oil-linked contracts.

“Customer demand for our LNG remains strong, and our diversified portfolio positions us to meet global energy needs today while progressing toward a lower-carbon future,” O’Neill said.