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Williams is investing USD 1.9 billion in Woodside Energy's Louisiana LNG project, securing a 10% stake in the project's holding company and 80% of the Driftwood pipeline. The investment reduces Woodside's total capital expenditure on the USD 17.5 billion project to USD 9.9 billion and ensures Williams receives 1.5 mtpa of LNG production, along with a share of an existing Uniper offtake. Louisiana LNG, projected to produce 16.5 mtpa by 2029, is the first U.S. export project to reach a final investment decision in 2025 amid strong government support for LNG expansion.
U.S.-based gas pipeline operator Williams has agreed to invest USD 1.9 billion in Woodside Energy's USD 17.5 billion liquefied natural gas (LNG) production and export terminal under construction in Louisiana. As part of the deal, Williams will hold a 10% stake in the project's holding company and own 80% of the Driftwood pipeline, which will supply natural gas to the Louisiana LNG facility. Advertisement
Earlier this year, Woodside sold a 40% stake in the infrastructure company behind Louisiana LNG to U.S. investor Stonepeak for USD 5.7 billion. The latest investment is expected to bring total proceeds of USD 378 million for Woodside, reducing its overall capital expenditure on the project from a previous estimate of USD 11.8 billion to USD 9.9 billion.
Under the agreement, Williams will receive a production share of 1.5 million metric tons per annum (mtpa) from Louisiana LNG. The company will also acquire 10% of a 1 mtpa offtake deal Woodside had previously signed with Uniper, ensuring both supply access and strategic participation in the project. Following the announcement, shares in Woodside's Australian-listed company rose as much as 4.1% to A$24.11 in Sydney, marking the highest level since mid-September.
Louisiana LNG is expected to reach a capacity of 16.5 mtpa when it begins production in 2029. It was the first LNG export project in the U.S. to reach a final investment decision in 2025. The U.S. government has actively supported oil and gas production and exports, approving over 65 mtpa of additional LNG capacity since early 2025. Executive measures and trade policies have encouraged global partners to increase imports of American energy, underlining the growing emphasis on LNG exports from the country.
Source Reuters
5th Jun, 2025
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