Woodside CEO: Louisiana LNG project to be partnered with several companies by March
Ron Bousso & Marwa Rashad
Woodside Energy's CEO said that the company expects to have several partners in its Louisiana liquefied gas project by the time it gives financial approval to the U.S. Project, which is expected to be the first quarter of 2020.
Woodside, a company listed in Australia, is looking to sell 50% of its Louisiana LNG project. It now owns the entire project after acquiring Tellurian Inc. for $1.2 billion in October. The U.S. Gulf Coast plant could convert U.S. Shale Gas into up to 27,7 million tons of LNG per year.
Woodside has held talks with U.S. natural gas producers, traditional LNG buyers who take an equity stake and LNG supplies from the project as well as infrastructure-focused investors seeking steady revenue over a long time, CEO Meg O'Neill told .
She said that announcements of new partners for the project would "be made at the very latest, concurrent with the FID" (final investment decision).
The goal is to create a team of dreamers where everyone in the partnership can contribute something valuable. She said that it could be a better understanding of the onshore market, infrastructure capital or LNG offtake and marketing experience.
O'Neill refused to name the companies with which they had worked. Last month, it was reported that Woodside and Tokyo Gas were in negotiations over a stake in this project. This information came from people who are familiar with the situation.
O'Neill stated that she felt "comfortable", Woodside will be able to fund its share of development costs through its own balance sheet.
O'Neill stated that Woodside will secure natural gas supplies following the final investment decision for the project. The project is expected to begin production in 2028.
O'Neill said that after renegotiating the contract for development with Bechtel service company, it is estimated that the project will cost between $900 and $960 per ton LNG.
She said that there are inflationary pressures in both the supply chain as well as the labor market.
(source: Reuters)
