Woodside Energy, Australia signs LNG deal with BP to supply Louisiana project

Woodside Energy, a major Australian oil and natural gas company, announced on Wednesday that it had signed a deal with BP under which the British energy company would supply natural gases to its Louisiana liquefied gas project (LNG).

Woodside, in a press release, said that the Louisiana project will buy a maximum of 640 billion cubic foot of gas over a long term basis from the integrated energy giant. However, it did not reveal any financial details.

Woodside acquired Tellurian last year for $1.2 billion to develop in four phases the 27,6 million metric ton a year Louisiana LNG Project, formerly known as Driftwood. This project is designed to meet the growing demand for natural gas.

Louisiana LNG will help Woodside to produce 24 million tonnes per annum (Mtpa), from its worldwide LNG pipeline, in the next decade. This is more than 5%, of its global LNG supply, for Europe and Asia.

The project will generate $2 billion of annual net operating cash by 2030, with an internal rate-of-return of 13%. Its payback period is seven years.

Woodside, Australia’s largest gas producer, has agreed to sell 40% of its Louisiana LNG Plant to U.S. Infrastructure Investor Stonepeak for $5.7 Billion.

(source: Reuters)