Stonepeak acquires 40% stake in Woodside Energy Louisiana LNG project

The Australian energy company announced on Monday that Stonepeak, a U.S. investment firm, will purchase a 40% stake and contribute $5.7billion in capital expenditures in Woodside Energy’s Louisiana LNG Project.

Stonepeak, a company that manages assets worth $72 billion, will provide $5.7 billion for capital expenditures to develop the foundations of the project. This contribution is expected to accelerate in 2025 and 2026.

The agreement comes as President Donald Trump is pushing for trade partners to purchase more U.S. Energy. In his first few weeks as president, Trump issued a number of executive orders aimed at increasing domestic oil and natural gas production.

Global players are competing for U.S. Liquefied Natural Gas (LNG) projects in order to diversify their supplies and possibly fend of U.S. Tariffs under the Trump Administration, by increasing imports of energy and narrowing the trade deficits which irks the U.S. President.

Woodside has been in discussions with several buyers about a stake sale of its Louisiana LNG project.

After the completion of the transaction, the company retains a 60% share in the project.

Woodside CEO Meg O'Neill stated on Monday that "we will continue to advance discussions with additional partners aiming for an equity selldown of approximately 50% in the integrated Project".

Louisiana LNG, which awaits a final decision on investment, will likely be built in phases. Phase I is expected to produce 11,000,000 metric tons of supercooled gas per year (MTPA).

The project will produce 27,6 MTPA when completed.

Woodside shares were down 7.5% to A$18.89 as of 0104 GMT. This is in line with a 8.6% drop in the energy sub-index.

(source: Reuters)