Woodside selling 40% stake in Louisiana LNG project to Stonepeak, attracting equity partners.

From Yahoo Finance: 2025-04-07 05:06:00

Woodside signs agreement to sell 40% stake in Louisiana LNG infrastructure to Stonepeak, reducing capex and attracting equity partners with $5.7bn contribution. Stonepeak to fund 75% of 16.5mtpa development starting 2025, nearing FID with total 27.6mtpa capacity. Woodside will operate the project, discussing equity sell-down with potential partners.

Stonepeak’s 40% equity in Louisiana LNG InfraCo, managed by Woodside, involves competitive tolling agreement terms. Stonepeak’s lower capital contribution due to time value adjustment. Stonepeak sees Louisiana LNG’s critical role in US LNG market, investing in newbuild facility with attractive risk-reward profile and best-in-class partners.

HoldCo covers cost overruns, ensuring capex certainty for Stonepeak. Foundation development cost estimated at $900-960 per tonne, excluding pipeline and HoldCo expenses. Transaction completion subject to FID approval and regulatory conditions, effective date 1 January 2025, closing targeted for second quarter 2025. Stonepeak to make $2bn payment for capex funding share.

Read more: Woodside to divest 40% stake in Louisiana LNG project to Stonepeak