Woodside Energy approves Louisiana LNG development
Woodside Energy is positioned to become a global LNG powerhouse following a historic decision April 29 to approve the Louisiana LNG development in Southweast Louisiana, announced company officials.
The announcement is poised to have a significant positive impact on the Southeast Texas region, primarily through job creation and increased economic activity in related industries, officials further tout.
Elton Hollis, co-founder of the Golden Triangle Industrial Group, said it was definitely great to see this project get the “green light.”
He noted approval of the project has ignited excitement across Southeast Texas, promising a significant economic boost to the region.
“This project, situated near the Texas-Louisiana border, is a pivotal moment for the local economy, bringing with it a surge in job opportunities and business growth,” Hollis said. “As construction ramps up, thousands of jobs are expected to be created, drawing in a diverse workforce and significantly reducing unemployment rates across the region. Skilled laborers, engineers, and technicians stand to benefit as demand for specialized skills rises, positioning Southeast Texas as a buzzing hub of economic activity.”
Hollis stated that beyond direct employment, the ripple effects of the LNG project are set to revitalize small businesses and service providers.
“Local restaurants, hotels, and retail outlets are poised for an influx of customers, spurred by an increase in workers and their families settling in the area,” he said. “Furthermore, the project enhances Southeast Texas’ reputation as a key player in the global energy market, potentially attracting additional investments and projects in the energy sector.”
Hollis added the project signifies not just a bright economic future but also solidifies the region’s integral role in meeting global energy demands.
“Southeast Texas seems to be on the brink of a dynamic economic transformation, fueling optimism and community vigor for more job opportunities,” he said.
The Golden Triangle Industrial Group was founded by Hollis and Travis Woods, and their goal was to form a group that would bring a unique and energetic business development event to Southeast Texas. They also hold monthly networking opportunities that offers businesses an up-close and personal chance to meet leads and gather updates on upcoming projects in the greater Southeast Texas area.
Development of Louisiana LNG will enable Woodside to deliver approximately 24 Mtpa from its global LNG portfolio in the 2030s, operating more than 5% of global LNG supply.
“Louisiana LNG is a game-changer for Woodside, set to position our company as a global LNG powerhouse and enable us to deliver enduring shareholder returns,” CEO Meg O’Neill said.
With first LNG targeted for 2029, Louisiana LNG represents a compelling investment that will deliver significant cash flow and create long-term value for shareholders. It exceeds the company’s capital allocation targets, delivering an internal rate of return (IRR) above 13% and a payback period of seven years.
Woodside celebrated the announcement at an event hosted by Gov. Jeff Landry in Baton Rouge, Louisiana. The $17.5 billion production and export facility represents the largest single foreign direct investment in the state of Louisiana’s history, and is the first greenfield U.S. LNG project to go to final investment decision (FID) since 2023. It will support about 15,000 national jobs during construction.
In the weeks leading up to FID, Woodside secured important agreements to support development of Louisiana LNG. These were:
• Energy infrastructure investor Stonepeak agreeing to acquire a 40% interest in Louisiana Infrastructure for $5.7 billion on April 7.
• European energy company Uniper signing a sale and purchase agreement with Woodside for 1 million tonnes per annnum (Mtpa) from Louisiana LNG, plus another 1 Mtpa from its global portfolio on April 17.
The day following the FID announcement, Woodside also announced a long-term agreement with British Petrolum (bp) for the supply of up to 640 billion cubic feet of natural gas to the Louisiana LNG project, starting in 2029. O’Neill said Woodside has had a long history of successful collaboration with bp.
O’Neill described the new gas supply agreement with the global energy giant as an important step, not least because it will allow Woodside to draw upon bp’s experience with MiQ certificates. MiQ is a not-for-profit global leader in methane certification. It recently certified bp as the first energy major in the U.S. to verify 100% of its U.S. onshore portfolio of natural gas.
“By drawing upon bp’s experience with MiQ certificates, we can access verifiably low methane intensity molecules for the Louisiana LNG project. This supports Woodside’s goals as a member in the UN Environment Programme’s OGMP 2.0 initiative,” she added.
— Dannie Oliveaux
