Investment firm Stonepeak will spend $5.7 billion to acquire 40% interest in Woodside’s Louisiana LNG production and export terminal in Calcasieu Parish, Louisiana. The project has a total permitted capacity of 27.6 mtpa and is nearing final investment decision (FID) for the foundation development.
Under the transaction, Stonepeak will provide the total purchase price towards the three- train 16.5-mtpa foundation development of Louisiana LNG on an accelerated basis, contributing 75% of project capital expenditure in both 2025 and 2026.
Construction is currently underway, and the front-end engineering design has been completed. Bechtel is the engineering, procurement, and construction contractor for the project. Woodside will continue to operate the project following completion of the transaction.
“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,” said James Wyper, senior managing director and head of US private equity at Stonepeak. “The project represents a compelling opportunity to invest in a newbuild LNG export facility nearing FID approval with an attractive risk-return profile and best-in-class partners in both Bechtel and Woodside to construct and operate the asset.”
The effective date of the transaction is 1 January 2025, and closing is targeted in the second quarter of 2025. On completion, a payment of approximately $2 billion is anticipated for Stonepeak’s share of Capex funding incurred since the effective date.
Closing is subject to conditions including FID for the Louisiana LNG foundation development, as well as regulatory, legal, and other customary approvals.
“This transaction further confirms Louisiana LNG’s position as a globally attractive investment set to deliver long-term value to our shareholders,’ said Woodside Chief Executive Meg O’Neill. “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.”
Woodside joined the project via its October 2024 purchase of Tellurian and its then Driftwood LNG project. The company paid $900 million in cash for the company and its LNG assets. Upon closing, Woodside renamed Driftwood LNG to Woodside Louisiana LNG.
US LNG facilities have lagged the market due in part to the freeze on permitting by the Biden administration that lasted roughly a year. That pause was removed in January, but many facility operators are having to play catch-up.
The Impact on Carriers
One of the knock-on effects has been the oversupply of LNG carriers currently being experienced across the globe. The delivery of newbuilds designed to transport cargoes from new plants have outpaced those facilities coming on-line, putting downward pressure on rates for LNG carriers—including a period earlier this year where those rates held negative value.
The negative rates hit the 160,000-m3 tri-fuel diesel electric vessel class in February in the Atlantic Basin. A snapshot of the market by price‑reporting agency Spark Commodities showed a minus $2,250/day—a negative round‑trip freight rate. The 174,000-m3 vessels, which have become the industry standard, saw rates at around $3,500/day, a record low.
