Woodside has closed the sale to US pipeline operator Williams of a 10% stake in Louisiana LNG (HoldCo) and an 80% stake in Driftwood Pipeline for a combined total of USD 378 million, Woodside announced on Thursday.
Under the agreement, Williams will contribute approximately USD 1.9 billion in capital expenditure towards the LNG facility and pipeline, reducing Woodside’s total expected capital expenditure for the Louisiana LNG project to an estimated USD 9.9 billion. With the deal, Williams also assumes offtake obligations for 10% of the produced LNG volumes, equivalent to 1.6 million tonnes per year (tpy).
Following the transaction, Woodside retains 90% of Louisiana LNG (HoldCo) and 20% of Driftwood Pipeline.
Williams, which currently operates more than 53,000 kilometres of pipelines in the US, will manage the construction and operation of the Line 200 pipeline to connect Louisiana LNG to the network. The company will also take over as operator of Driftwood Pipeline
“We are excited to have Williams join us as a strategic partner in Louisiana LNG, given its leadership in US natural gas infrastructure and ability to add value and deliver operational benefits to enhance the project. Woodside’s proven track record in developing and operating LNG facilities and global marketing, and Williams’ expertise in pipelines and gas sourcing, create an energy partnership that has the capability to realise opportunities for long-term global energy demand,” said Woodside CEO Meg O’Neill.
Louisiana LNG is under construction in Calcasieu Parish, Louisiana, with a total permitted LNG production capacity of 27.6 million tpy. Following a positive FID on the project in April 2025, Woodside expects the facility’s first three liquefaction trains to come on line in 2029 with a combined capacity of 16.5 million tpy.
Source: theenergyyear.com