Woodside Energy, Australia’s largest gas producer, is evaluating the potential impact of new U.S. tariffs and trade measures on its Louisiana LNG project, as it moves closer to a final investment decision.
The company acquired the project—formerly known as Driftwood—from Tellurian for $1.2 billion last year, aiming to strengthen its position as a global LNG leader. The first phase of development is projected to cost $16 billion.
In a quarterly update, CEO Meg O’Neill said the project is located within a foreign-trade zone, allowing for deferred tariff payments until each liquefied natural gas (LNG) train is completed.
However, about 25% of the project’s capital expenditure is for equipment and materials—roughly half of which will need to be imported.
The review comes in light of recent U.S. tariff announcements that could potentially raise costs. “We are assessing the potential impacts of recent tariff announcements and potential further trade measures on Louisiana LNG,” O’Neill stated.
To boost project economics, Woodside recently sold a 40% stake in the Louisiana LNG export terminal to U.S. investment firm Stonepeak, which will fund 75% of the project’s expenditures for 2025 and 2026.
The company also secured its first offtake agreement with Germany’s Uniper for one million tonnes of LNG annually.
“We are pleased with the strong level of interest from potential strategic partners and are advancing discussions for further equity sell-down,” said O’Neill, reaffirming Woodside’s ambition to become a global LNG powerhouse.
The update coincided with strong quarterly financial results. Woodside reported revenue of $3.32 billion for the quarter ending March 31, surpassing expectations and up 13% year-on-year, driven by strong gas hub-linked prices and the start-up of its Sangomar project in Senegal.
However, revenue fell 5% from the previous quarter due to lower oil-linked prices, weather disruptions at the North West Shelf, and outages at its Pluto LNG facility.
Despite these short-term challenges, Woodside maintained its 2025 production and capital expenditure guidance.
Shares rose as much as 3.9% to A$20.47, in line with gains in global oil prices and the broader energy sector.