Investment firm Stonepeak purchased a 40% interest in a project Australia’s Woodside Energy bought last year for $900 million. (Source: Shutterstock.com)
Editor's note: This story was updated to include additional information.
Investment firm Stonepeak has agreed to purchase a 40% interest in Woodside Energy’s Louisiana LNG project for $5.7 billion, according to an April 6 press release.
Stonepeak has a demonstrated track record in investing in U.S. gas and LNG infrastructure across LNG facilities, LNG carriers and floating storage and regasification units, said Woodside CEO Meg O’Neill. Australia’s Woodside purchased the facility from Tellurian in October for $900 million.
Under the deal, Stonepeak will provide $5.7 billion toward the expected capex for the 16.5 million tonnes per annum (mtpa) foundation development of Louisiana LNG on an accelerated basis, contributing 75% of project capex in both 2025 and 2026.
The remainder of Stonepeak’s committed capital will be funded in subsequent years, Woodside said.
Louisiana LNG, which is close to reaching a final investment decision, is positioned near natural gas resources in Calcasieu Parish. It has direct access to the US Gulf Coast and a total permitted capacity of 27.6 mtpa.
“This transaction further confirms Louisiana LNG’s position as a globally attractive investment set to deliver long-term value to our shareholders,” O’Neill said. “It is the result of a highly competitive process that attracted leading global counterparties and significantly reduces Woodside’s capital expenditure for this world-class project.”
Construction is currently underway, and the project’s FEED has been completed. Bechtel is the engineering, procurement and construction (EPC) contractor for the project.
The estimated forward cost for the foundation development of Louisiana LNG from December 2024 remains $900/ tonne- $960/ tonne. This includes EPC costs, contractor completion incentive payments, owner’s costs, allowances and contingency. It excludes pipeline cost and HoldCo costs and contingency.
In February, Woodside was in reported talks with several potential buyers of stakes in Louisiana LNG, including Tokyo Gas, JERA and Saudi Aramco.
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“We are pleased with the strong level of interest from counterparties and customers in 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,” O'Neill said.
Woodside will continue to operate Louisiana LNG following completion of the transaction, which is anticipated for second-quarter 2025.
Mizuho Bank Ltd. and its affiliate Greenhill & Co. and Santander US Capital Markets LLC served as financial advisers to Stonepeak.
Simpson Thacher & Bartlett LLP served as transactional legal counsel and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as financing legal counsel to Stonepeak.
RBC Capital Markets and Evercore served as financial advisers to Woodside. Norton Rose Fulbright served as legal counsel to Woodside.
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