Not even today's multi-billion-dollar partnership announcement can lift Woodside Energy Group Ltd (ASX: WDS) shares above the Trump tariff market carnage we're witnessing today.
Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed on Friday trading for $20.43. In morning trade on Monday, shares are changing hands for $18.82 apiece, down 7.9%.
For some context, the ASX 200 is down 6.5% at this same time.
Much of the headwinds battering Woodside shares today come amid growing concerns of a tariff-driven global recession, which would reduce energy demand. This sees the Brent crude oil price down 3.4% overnight to US$63.38 per barrel, according to data from Bloomberg.
That's the lowest oil price we've seen since the pandemic lockdown days of early 2021.
Looking beyond the short-term turmoil, however, Woodside shares could get ongoing support from the company's partnership with Stonepeak, a global investment firm specialising in infrastructure and real assets.
Here's what's happening.
Image source: Getty Images
Woodside shares in focus amid US$5.7 billion Louisiana LNG deal
In an announcement that's yet to lift Woodside shares today, the company reported it has entered into a binding agreement with Stonepeak for the sale of a 40% interest in Louisiana LNG Infrastructure LLC, located in the United States.
Woodside said the deal provides validation of the project's quality and increases its attractiveness to other potential equity partners. In potentially good news for future dividends, the company also noted it will "strengthen the capacity for shareholder returns".
The ASX 200 energy stock said the transaction "significantly reduces" its capital expenditure profile and "is a material step" towards making a final investment decision.
Stonepeak will provide US$5.7 billion (AU$9.3 billion) for the foundation development of Louisiana LNG on an accelerated basis.
The investment firm will contribute 75% of the project's capital expenditure in 2025 and 2026. The remainder of Stonepeak's committed capital will be funded in subsequent years.
What did management say?
Commenting on the deal that could support Woodside shares longer-term, CEO Meg O'Neill noted that Stonepeak has a "demonstrated track record investing in US gas and LNG infrastructure across LNG facilities, LNG carriers, and floating storage and regasification units".
She said, "This transaction further confirms Louisiana LNG's position as a globally attractive investment set to deliver long-term value to our shareholders."
According to O'Neill:
Our partnership with Stonepeak, together with our lump sum turnkey EPC agreement with Bechtel, and existing regulatory permits, give us confidence to progress at pace towards a final investment decision on Louisiana LNG…
We will continue advancing discussions with additional potential partners targeting an equity sell-down of around 50% in the integrated project. As we have demonstrated with our Scarborough and Pluto Train 2 Project in Australia, the addition of an infrastructure partner unlocks value and paves the way for other strategic equity partners.
Stonepeak senior managing director James Wyper said, "With the need to bring significant additional capacity online over the coming years, we have strong conviction in the critical role Louisiana LNG will play in the US LNG export market."
With today's intraday losses factored in, Woodside shares are down 25% in 2025, not including dividends.
