$17.5 billion Louisiana LNG project surges ahead with new construction milestone

September 16, 2025, by Melisa Cavcic

As America’s energy policy continues to assert dominance across the global power sector, especially in relation to the liquefied natural gas (LNG) construction boom, which is reshaping the U.S. Gulf’s energy landscape, an LNG development project in Calcasieu Parish, Louisiana, operated by Australia’s Woodside Energy, is off to a good start with 22% completion already achieved.

Rendering of Louisiana LNG; Source: Meg O'Neill via LinkedIn

Woodside has held a groundbreaking ceremony to mark the rapid progress in developing the $17.5 billion Louisiana LNG project, formerly known as Driftwood LNG, in the United States, which is owned by Louisiana LNG Infrastructure (InfraCo), made up of Stonepeak (40% interest) and Louisiana LNG (HoldCo), the holding company operated by the Australian energy giant.

Meg O’Neill, Woodside CEO, told attendees: “The project is a game-changer for Woodside, marking our biggest-ever investment in the US and representing the largest foreign direct investment in Louisiana’s history. It positions Woodside as a global LNG powerhouse and will deliver enduring returns to shareholders.

“Louisiana LNG will be a significant contributor to US LNG exports, supporting the nation’s role as a leading energy supplier to the world. It is expected to support tens of thousands of high-quality jobs in the US, strengthen global energy security and generate billions of dollars in local and national revenues, delivering long-term benefits to the communities where we operate.”

Following a final investment decision (FID) on the project in April 2025, the construction workforce has ramped up to almost 900 personnel, with work on the first of three LNG trains now more than 22% complete. The project, based in southwest Louisiana, is targeting first LNG production in 2029 from a three-train foundation development with a capacity of 16.5 million tonnes per annum (mtpa).

Sarah Bairstow, Louisiana LNG’s President, underlined: “Woodside is focused on the safe execution and delivery of Louisiana LNG. Construction activity under our contractor Bechtel is proceeding at pace. The facility is being constructed piece-by-piece in the US, meaning approximately 85% of the construction spend is local. At the same time, we continue to actively market US LNG in Europe and Asia, targeting delivery from 2029 onwards.”

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With an expansion capacity for two additional LNG trains, this project is fully permitted for a total capacity of 27.6 million tonnes per year. Woodside, which completed the sell-down of a 40% interest in Louisiana LNG Infrastructure to Stonepeak in June, is continuing discussions with potential high-quality partners interested in acquiring equity in the project holding company.

Chris Wright, US Secretary for Energy, highlighted: “Expanding US LNG exports expands American prosperity, supports jobs in the Gulf Coast region and strengthens the energy security of our allies and trading partners around the world. Projects like this send a signal to the rest of the world that the US is once again open for business and prepared to lead the world with President Trump’s American energy dominance agenda.”

Woodside recently inked a deal with BP for gas to feed the Louisiana plant, while Aramco expressed its interest in a potential equity interest in an offtake from Louisiana LNG. The Australian giant also penned a deal to supply Petronas with 1 mtpa of LNG for 15 years, starting in 2028.

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Doug Burgum, US Secretary of the Interior, emphasized: “Louisiana LNG is another win for President Trump’s American Energy Dominance Agenda. Woodside Energy is breaking ground on a new LNG export terminal in the Gulf of America, creating more jobs for American workers and helping us sell energy to our friends and allies.”