Woodside Energy Signs Up Williams as Investor in Louisiana LNG Project — Update

By David Winning

SYDNEY--Woodside Energy said U.S.-based Williams would invest in its Louisiana LNG project, reducing its share of development costs and securing a partner with deep knowledge of U.S. pipeline networks and natural-gas markets.

Woodside has agreed to sell to Williams a 10% interest in the holding company of the Louisiana LNG project, which aims to produce some 16.5 million metric tons of liquefied natural gas in a first phase of development. Construction of the facility is underway with first LNG output targeted in 2029.

Woodside said it will also sell to Williams an 80% stake in Driftwood Pipeline, which owns the Line 200 pipeline that will run to the facility, and let it become operator of that business.

Woodside said Williams, which handles roughly one third of natural gas volumes across the U.S., is paying some US$378 million for both assets. That includes a share of capital spent by Woodside on the Louisiana LNG project since the start of January. The headline purchase price is US$250 million.

It comes as the world's biggest energy companies raise bets on natural gas playing a key role in the global energy transition. According to the International Energy Agency, global gas demand reached an all-time high last year, driven by consumption in emerging market and developing economies. The appeal of LNG has grown as many countries looked to scale back imports of Russian natural gas following its invasion of Ukraine early in 2022.

Still, some experts warn of a looming glut of LNG toward the end of this decade as companies accelerate developments of new facilities, including in the U.S. and the Middle East.

Woodside acquired the Louisiana LNG project through its US$900 million acquisition of Tellurian last year. It estimates the project will cost US$17.5 billion to build, which unsettled some analysts who felt the Australian company might struggle to meet its capital commitments at Louisiana LNG and elsewhere without paring its dividend.

Woodside's deal with Williams should help to ease those concerns. Woodside said on Thursday that its share of capital expenditure for Louisiana LNG is now likely to be US$9.9 billion, down from US$11.8 billion in April when it took the decision to proceed with building the project.

As part of the transaction, Williams secured rights to 10% of natural gas produced by the facility when it comes online, equivalent to 1.6 million tons of LNG.

"This is Williams's first investment in LNG and its participation in Louisiana LNG is a testament to the quality of the project," said Woodside Chief Executive Meg O'Neill.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

October 22, 2025 18:47 ET (22:47 GMT)