(The Center Square) – A West Australian energy company is building a liquified natural gas (LNG) production and export terminal in Louisiana to expand the U.S. liquified natural gas export market.
Perth, Australia-based Woodside Energy on Tuesday announced its plan to develop a three-train, 16.5 million ton per annum (Mtpa) liquefied natural gas production and export terminal in Calcasieu Parish, Louisiana, called Louisiana LNG.
Gov. Jeff Landry said the company’s and a New York company decisions to invest $17.5 billion in the project was because of President Donald Trump’s “commitment to unleash American Energy.”
The Biden administration sought to ban new exports of LNG primarily impacting companies in Louisiana and Texas. A federal judge blocked Biden’s efforts last July. Still, the oil and natural gas industry has been the target of environmentalist lawsuits for decades, dissuading investment in the state despite the impact to the state and national economy and global markets.
The U.S. is the world’s largest liquefied natural gas exporter, with Louisiana handling 61% of U.S. LNG exports in 2023, according to the latest U.S. Energy Information Agency data.
Louisiana ranks third highest in marketed natural gas production and seventh in proved natural gas reserves in the country. The Pelican State accounts for roughly 10% of U.S. total marketed natural gas production and holds roughly 6% of U.S. natural gas reserves.
Woodside’s announcement signifies a turning point for the industry in Louisiana.
It’s the largest single foreign direct investment in Louisiana history.
“Our ‘all of the above’ approach to energy is working,” Landry said in a statement. “We have four active LNG terminals in Louisiana – more than any other state. With more than 30,000 miles of natural gas pipelines, it is clear that when it comes to LNG, Louisiana is the place to be. We are not only promising President Trump’s agenda, we are delivering it!”
“Development of Louisiana LNG will position Woodside as a global LNG powerhouse, enabling the company to deliver approximately 24 Mtpa from its global LNG portfolio in the 2030s, and operating over 5% of global LNG supply,” Woodside said.
The project is fully permitted for a total capacity of 27.6 Mtpa. It will also be “the first greenfield US LNG project to go to final investment decision since July 2023,” it said.
Louisiana LNG will support approximately 15,000 jobs throughout the project’s construction, which has received support from the U.S. federal government and state government, Woodside said.
“Adding Louisiana LNG to our established Australian LNG business provides Woodside with a balanced and resilient portfolio, combining long-life, flexible LNG assets with high-return oil assets,” Woodside CEO Meg O’Neill said. “The project benefits from access to abundant low-cost gas resources in the United States and boasts an asset lifespan of more than 40 years. It also has access to well-established interstate and intrastate gas supply networks.”
LNG exports from the facility would meet “sustained demand in Asia and Europe, as those markets pursue energy security and decarbonisation aspirations,” she said.
Construction is currently underway, with the front-end engineering design completed. Bechtel is the engineering, procurement, and construction contractor overseeing the project’s construction. Woodside expects the first batch of LNG exports to be produced in 2029.
Stonepeak, a New York-based investment firm with $72 billion worth of asset management, acquired a 40% interest in the project.
“With the need to bring significant additional capacity online over the coming years, we have strong conviction in the critical role Louisiana LNG will play in the US LNG export market,” James Wyper, senior managing director and head of U.S. Private Equity at Stonepeak, said.
O’Neill said Stonepeak joining as an investor was important because it has a track record of “investing in U.S. gas and LNG infrastructure across LNG facilities, LNG carriers, and floating storage and regasification units.” Their investment “further confirms Louisiana LNG’s position as a globally attractive investment set to deliver long-term value to our shareholders” and was “the result of a highly competitive process that attracted leading global counterparties.”
Stonepeak pioneered Australia’s LNG industry operating its North West Shelf Project, shipping its first LNG cargo to Japan in 1989.
“LNG is flexible, it’s transportable, and it’s lower-carbon intensity than coal or liquid fuels. In many ways, we see this as the commodity of the future,” O’Neill told Fortune.
This article was originally published at www.thecentersquare.com