The Woodside Energy Group Ltd (ASX: WDS) share price is in focus today as Woodside announced it has formed a strategic partnership with Williams for its Louisiana LNG project, securing US$250 million in proceeds and significantly reducing future capital expenditure.
What did Woodside report?
- Sale of 10% interest in Louisiana LNG LLC (HoldCo) and 80% of Driftwood Pipeline LLC (PipelineCo) to Williams
- Received total cash proceeds of $378 million, including capital reimbursement since 1 January 2025
- Woodside's total capital expenditure for Louisiana LNG now expected to be $9.9 billion, down from $11.8 billion
- Williams to contribute ~US$1.9 billion in capex for the LNG facility and pipeline
- Williams assumes LNG offtake obligations for 10% of volumes, or 1.6 Mtpa
What else do investors need to know?
Williams will now operate the Line 200 pipeline to the Louisiana LNG Terminal, expanding their US pipeline footprint. The Louisiana LNG project remains fully permitted, with a combined capacity of 27.6 Mtpa across five trains and targeting first LNG exports in 2029.
Woodside's new partnership structure delivers capital for further development, as well as long-term offtake security and enhanced operational expertise by leveraging Williams' proven US gas infrastructure and Sequent Energy Management business.
What did Woodside management say?
Woodside CEO Meg O'Neill commented:
We are excited to have Williams join us as a strategic partner in Louisiana LNG given its leadership in US 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… we are on track to deliver first LNG in 2029 and create long-term value for our shareholders.
What's next for Woodside?
Woodside intends to leverage Williams' capabilities in gas sourcing and operations as it advances the Louisiana LNG project. With major contractors and offtake partners in place, Woodside aims to deliver first LNG cargoes from 2029, progressing towards its long-term global supply strategy.
The partnership and reduced capex commitments put Woodside in a stronger financial position while supporting the company's focus on energy transition opportunities and value creation for shareholders.
Woodside share price snapshot
Woodside shares have declined 5% over the past 12 months, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen around 8% over the same period.
