Woodside unlocks $1.9 billion injection into $17.5B US LNG project with Williams partnership

October 23, 2025, by Melisa Cavcic

By sealing an alliance with Williams, a U.S. natural gas infrastructure player, Australia’s energy giant Woodside Energy has boosted capital and offtake momentum for its liquefied natural gas (LNG) development project in Calcasieu Parish, Louisiana.

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

While disclosing that it has simultaneously signed and closed a transaction for an integrated investment in Louisiana LNG, Woodside explains that the strategic partnership involves the sale of a 10% of its 100% stake in Louisiana LNG LLC (HoldCo) and an 80% interest and operatorship of Driftwood Pipeline LLC (PipelineCo) to Williams for $250 million at the effective date of January 1, 2025.

HoldCo owns 60% equity in Louisiana LNG Infrastructure LLC (InfraCo), with the remainder being owned by Stonepeak. According to the company, Williams will contribute its share of the capital expenditure for the LNG facility and pipeline of approximately $1.9 billion and assume LNG offtake obligations for 10% of produced volumes.

Chad Zamarin, President and CEO of Williams, underlined. “This transaction marks an important step forward in Williams’ wellhead to water strategy – integrating upstream, midstream, marketing and LNG capabilities to deliver the cleanest, most reliable energy to global markets.”

The firm currently operates more than 33,000 miles of pipeline across 24 states in the U.S., and its existing gas sourcing platform, Sequent Energy Management (Sequent), has a marketing and optimization footprint of over 7 bcf/d.

View on Offshore-energy.

With total received proceeds of $378 million, including proportionate capital reimbursement since the effective date, this transaction is perceived to represent the next key stage toward realizing the Australian firm’s strategy for the project, securing capital and offtake commitments alongside a strong strategic partner with complementary capabilities in U.S. natural gas infrastructure and the Sequent platform.

Meg O’Neill, Woodside’s CEO, commented: “We are excited to have Williams join us as a strategic partner in Louisiana LNG given its leadership in U.S. natural gas infrastructure and ability to add value and deliver operational benefits to enhance the project. This is Williams’ first investment in LNG and its participation in Louisiana LNG is a testament to the quality of the project.

“The bringing together of Woodside’s proven track record in developing and operating LNG facilities and global marketing, and Williams’ expertise in pipelines and gas sourcing, creates an energy partnership that has the combined capability to realise opportunities for long-term global energy demand.”

This player is anticipated to utilize its pipeline experience to construct and operate the Line 200 pipeline to the Louisiana LNG terminal. A gas supply team will operationalize and optimize daily gas sourcing and balancing in line with Louisiana LNG’s gas procurement strategy, leveraging the established Sequent platform and capabilities to support reliable feedgas supply for the benefit of all Louisiana LNG participants.

“With strong LNG contracting momentum from Louisiana LNG and our portfolio, our existing infrastructure partner New York-based Stonepeak, and our key contracting partners including Bechtel, Baker Hughes and Chart, we are on track to deliver first LNG in 2029 and create long-term value for our shareholders,” explained O’Neill.

View on Offshore-energy.

Williams’ total share of LNG production from Louisiana LNG will be 1.6 million tonnes per annum (mtpa) supplied to the firm under an LNG sale and purchase agreement (SPA) for approximately 1.5 mtpa, with the firm receiving the proportionate benefit of the Louisiana LNG’s 1 mtpa SPA previously signed with Uniper.

The effective date of the transaction is January 1, 2025, with completion having occurred simultaneously with execution. Woodside’s total capital expenditure for the Louisiana LNG project is now expected to be $9.9 billion, reduced from $11.8 billion at the time of the final investment decision (FID).