Woodside closes stake sale in Gulf Coast LNG project

June 25, 2025, by Dragana Nikše

Australia’s energy giant Woodside has completed the sale of an interest in its liquefied natural gas (LNG) development in Calcasieu Parish, Louisiana, to Stonepeak, a New York-based investment firm specializing in infrastructure and real assets.

Rendering of Louisiana LNG, former Driftwood LNG; Source: Tellurian, now part of Woodside Energy

Now that the transaction for the sell-down of stake in Louisiana LNG announced in April is finalized, Stonepeak owns a 40% interest in Louisiana LNG Infrastructure (InfraCo), while the remaining 60% is held by Louisiana LNG (HoldCo), the holding company operated by Woodside.

Furthermore, the U.S. player will provide $5.7 billion towards the expected capital expenditure for the foundation development of the project on an accelerated basis and contribute 75% of the project capital expenditure in 2025 and 2026.

Woodside disclosed having received a closing payment of approximately $1.9 billion, which reflects Stonepeak’s 75% share of capex funding incurred since the transaction’s effective date of January 1, 2025.

Woodside’s CEO Meg O’Neill said Stonepeak, which she believes is a high-quality partner, would add further value to the Louisiana LNG project. She noted that the partnership reflects the attractiveness of Louisiana LNG, adding that it was a key milestone towards achieving a final investment decision (FID).

“The accelerated capital contribution from Stonepeak enhances Louisiana LNG project returns and strengthens our capacity for shareholder returns ahead of first cargo from the Scarborough Energy Project in Western Australia, targeted for the second half of 2026. We continue to see strong interest from additional potential partners in Louisiana LNG,” commented O’Neill.

The $17.5 billion final investment decision for the project, made in late April, is said to be the largest single foreign direct investment in Louisiana’s history.

Woodside moves to become ‘global LNG powerhouse’ with $17.5B FID for Louisiana plant

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James Wyper, Stonepeak Senior Managing Director and Head of US Private Equity, noted: “Louisiana LNG will be a timely and strategic addition to the US LNG export landscape as the world’s demand for cleaner, more flexible and more affordable energy continues to grow. We look forward to contributing our expertise and capital to the construction and future operation of Louisiana LNG and are highly energised to continue supporting the development of critical North American LNG infrastructure with global impact.”

Formerly known as Driftwood LNG, the Louisiana LNG project is situated near Lake Charles, Louisiana. It is fully permitted with a total permitted capacity of 27.6 million tonnes per annum (mtpa) across five trains. The approved foundation project includes three trains with a combined capacity of 16.5 Mtpa.

Front-end engineering design (FEED) for the project is complete, and site construction has started on the project, which envisages the construction of five LNG plants through four phases. Bechtel is in charge of the engineering, procurement, and construction (EPC) portion of the project.

Following the FID, Woodside inked several deals related to the project. An agreement was signed with BP for the latter to supply gas to feed the Louisiana plant, and Aramco expressed its interest in the potential acquisition of an equity interest in an offtake from Louisiana LNG.

Last week, the Australian player penned a heads of agreement (HoA) to supply Petronas with 1 mtpa of LNG for 15 years, starting in 2028. The volumes would be supplied from Woodside’s global portfolio and could include the Louisiana LNG project.