Woodside Energy’s deal with Stonepeak marks a strategic shift in the development of its Louisiana LNG project. By securing $5.7 billion in accelerated capital from a proven infrastructure investor, Woodside reduces its financial exposure while maintaining operational control. This partnership not only boosts investor confidence but also enhances the project’s attractiveness to additional equity partners.
Woodside Energy (ASX:WDS) has signed a binding deal with global investment firm Stonepeak, selling a 40% stake in its Louisiana LNG Infrastructure LLC. The $5.7 billion investment will fund the project’s foundation development and marks a pivotal step toward a final investment decision.
Stonepeak’s early capital injection covers 75% of the project’s expected capital spending in 2025 and 2026. This move reduces Woodside Energy’s upfront costs and strengthens its cash flow ahead of revenues from its Scarborough project in Australia.
Woodside CEO Meg O’Neill called the agreement a major milestone.
“Stonepeak has a strong history in U.S. gas and LNG infrastructure, and their commitment confirms Louisiana LNG’s value,” she said.
The deal followed a highly competitive process. It also comes with a long-term liquefaction tolling agreement and supports Woodside’s broader equity sell-down strategy. The company plans to bring in more partners, aiming to offload up to 50% of the project.
The foundation development involves a three-train facility capable of producing 16.5 million tonnes of LNG per year. Construction will be handled under a lump sum turnkey contract with Bechtel, ensuring greater control over costs.
Why It Matters Louisiana LNG investment:
- The deal significantly reduces Woodside Energy capital exposure.
- Accelerated funding boosts near-term liquidity and supports shareholder returns.
- It signals growing investor confidence in U.S. LNG exports.
Stonepeak’s Senior Managing Director James Wyper highlighted the project’s strategic importance.
“We believe Louisiana LNG will play a critical role in expanding U.S. LNG export capacity. The project offers strong potential and is backed by experienced partners.”
Upon closing, Stonepeak will hold a 40% equity stake in InfraCo, the subsidiary managing construction and infrastructure. Woodside retains operational control and remains responsible for gas supply and LNG off-take through HoldCo.
The expected development cost stands between $900 to $960 per tonne, excluding pipeline expenses. Final approval depends on regulatory clearances and is targeted for the second quarter of 2025.
Woodside Energy Stonepeak Partnership:
- Stake Sold: 40% in Louisiana LNG Infrastructure LLC
- Buyer: Stonepeak
- Investment: $5.7 billion
- Output: 16.5 mtpa capacity
- Effective Date: January 1, 2025
- Expected Closing: Q2 2025
Woodside Energy’s financial advisors for the transaction include RBC Capital Markets and Evercore, with legal counsel from Norton Rose Fulbright.
The partnership underscores Woodside’s commitment to delivering long-term value while managing risk through strategic collaboration.
