Woodside has announced a final investment decision (FID) to move forward with its Louisiana LNG development, a major project consisting of three production trains with a total capacity of 16.5 million tons per annum (Mtpa). The company is targeting first LNG production by 2029.

Woodside’s project will enable the company to deliver approximately 24 Mtpa from its global LNG portfolio in the 2030s, operating over 5% of global LNG supply. The development’s total capacity is 27.6 Mtpa and includes expansion potential for two additional LNG trains.

Louisiana LNG represents a compelling investment that will deliver significant cash flows and create long-term value for Woodside shareholders. It exceeds Woodside’s capital allocation targets, delivering an internal rate of return (IRR) above 13% and a payback period of seven years.

At full capacity, the project is expected to generate approximately $2 billion of annual net operating cash in the 2030s.

The forecast total capital expenditure for the LNG project, pipeline, and management reserve is $17.5 billion (100%). Stonepeak, as an investor in Louisiana LNG Infrastructure LLC, will contribute $5.7 billion towards the project’s expected capital expenditure on an accelerated basis; contributing 75% of capital expenditure in both 2025 and 2026. Woodside’s share of the total forecast capital expenditure amounts to $11.8 billion.

Woodside’s greenhouse gas emissions reduction targets remain unchanged by following the FID on the Louisiana LNG project. The baseline for these targets will not be adjusted as a result of the FID.

Woodside CEO Meg O’Neill said that the FID on Louisiana LNG was a historic moment for the company. “Louisiana LNG is a game-changer for Woodside, set to position our company as a global LNG powerhouse and enable us to deliver enduring shareholder returns,” he said.

“This world-class project is a compelling and de-risked investment. It leverages Woodside’s proven strength in project execution, operational excellence, marketing and customer relationships to offer significant cash generation and drive long-term shareholder value,” O’Neill added.

Furthermore, he noted that the company has secured high-quality partners and is now prepared to make a final investment decision (FID). “This decision further demonstrates Woodside’s disciplined investment approach, with the project expected to deliver returns that exceed our capital allocation framework. Adding Louisiana LNG to our established Australian LNG business provides Woodside with a balanced and resilient portfolio; combining long-life, flexible LNG assets with high-return oil assets,” O’Neill concluded.