Woodside Energy Takes Bold Leap with Louisiana LNG Project Approval

Key Highlights:

• Final investment decision (FID) made on three-train, 16.5 Mtpa Louisiana LNG project
• Woodside eyes first LNG production by 2029, positioning to control over 5% of global LNG supply
• Forecasted to generate ~$2 billion annual net cash flow, enhancing shareholder returns
   

Woodside Energy Group Ltd (ASX: WDS) has set the stage for a transformative future, greenlighting the highly anticipated Louisiana LNG development in the United States. The final investment decision, announced today, propels Woodside into the global LNG elite, with the three-train project targeting an impressive 16.5 million tonnes per annum (Mtpa) and first production slated for 2029.

The move represents a pivotal expansion for the Perth-based energy major. Louisiana LNG is projected to elevate Woodside’s global LNG production to approximately 24 Mtpa by the 2030s — equating to more than 5% of global supply. Moreover, with expansion capabilities to 27.6 Mtpa already fully permitted, the project positions Woodside for long-term dominance in both the Pacific and Atlantic basins.

Financially, the development ticks all the right boxes. Woodside expects an internal rate of return exceeding 13%, and a payback period of just seven years. The company forecasts that at full operational capacity, Louisiana LNG will contribute about $2 billion in annual net operating cash flow, reinforcing a solid foundation for shareholder returns over the next decade.

Total capital expenditure is estimated at US$17.5 billion, with Woodside’s share pegged at around US$11.8 billion. Strategic partnerships are already in motion — Stonepeak will invest $5.7 billion, covering 75% of project capital expenditure in 2025 and 2026, significantly easing Woodside’s upfront financial burden.

Woodside CEO Meg O’Neill described the approval as a “game-changer,” highlighting that Louisiana LNG leverages the company’s proven strengths in project execution, marketing, and operational excellence. “This world-class project is a compelling and de-risked investment. It aligns perfectly with our disciplined capital allocation framework and our vision of enduring shareholder value,” she emphasized.

From an environmental standpoint, Woodside reiterated that its net equity Scope 1 and 2 emissions reduction targets remain intact, despite the addition of Louisiana LNG. Advanced design features — including flareless restart technology, methane reduction measures, and the use of electric drive compressors — are expected to help maintain a competitive carbon footprint relative to industry averages.

The Louisiana LNG project will also serve as a major economic boost, supporting approximately 15,000 jobs during construction and over 4,000 permanent jobs post-completion — marking it as the largest single foreign investment in Louisiana’s history.

In parallel with today’s milestone, Woodside confirmed strong global LNG demand fundamentals, with uncontracted LNG volumes expected to grow substantially through the 2040s, particularly across Asia and Europe. This context provides the company with multiple marketing avenues to optimize returns over the project’s long lifespan.

As of the latest trading session, Woodside shares (ASX: WDS) were up 1.23% to $20.61, reflecting renewed investor confidence following the announcement.

With the final investment decision now sealed, Woodside Energy steps firmly into a new chapter — one marked by global scale, expanded cash generation, and fortified market resilience.