Woodside Energy has approved a $17.5 billion investment to construct a new liquefied natural gas (LNG) plant in Louisiana, marking the first major U.S.
LNG project to reach final investment decision (FID) since President Donald Trump returned to office and declared an energy emergency aimed at expanding American energy exports.
The announcement positions the U.S. to further solidify its status as the world’s largest LNG exporter.
The Louisiana facility will feature three liquefaction trains with a total production capacity of 16.5 million tonnes per annum (Mtpa), with operations expected to commence in 2029.
The project also includes an option to expand with two additional trains, which would bring total capacity to 27.6 Mtpa.
The project’s cost is now $1.5 billion higher than previously estimated in 2023, reflecting updated assessments and inflationary pressures.
The approval comes just days after Woodside said it was reviewing the impact of new U.S. tariffs and trade policies on the project.
According to Woodside, the Louisiana development will enable the company to supply approximately 24 Mtpa across its global LNG portfolio by the 2030s—accounting for over 5% of the projected global LNG market.
Financially, the project is expected to generate $2 billion in annual net operating cash throughout the 2030s, delivering an internal rate of return of 13% and a payback period of seven years.
Stonepeak, an investor in the joint venture Louisiana LNG Infrastructure LLC, will contribute $5.7 billion toward the total capital expenditure, with the majority of its funding to be spent within the first two years of construction. Woodside will finance the remaining $11.8 billion.
Despite the scale of the investment, Woodside stated that its greenhouse gas emissions reduction targets remain unchanged following the FID.
