Woodside Energy sells 40% stake in Louisiana LNG project for $5.7 billion

From Yahoo Finance: 2025-04-07 11:18:00

Woodside Energy Group sold a 40% stake in Louisiana LNG Infrastructure LLC to Stonepeak for $5.7 billion. Stonepeak’s investment will cover 75% of capex in 2025 and 2026, easing Woodside’s financial burden and improving project economics. The deal is expected to close in Q2 2025, pending customary conditions.

Woodside will retain a 60% stake in Louisiana LNG LLC, while Stonepeak will invest $5.7 billion in the project. Stonepeak’s investment will cover 75% of the capital expenditure in 2025 and 2026. The deal is expected to close in the second quarter of 2025.

Stonepeak’s total investment of $5.7 billion will be less than their nominal 40% ownership stake in InfraCo due to the accelerated nature of their capital contributions. HoldCo will manage gas supply and LNG offtake, while Stonepeak will have cost certainty.

The projected cost for the Louisiana LNG project’s foundation phase is estimated at $900–$960 per tonne. The transaction is expected to close in Q2 2025, with Stonepeak making a payment of approximately $2 billion post-completion. Woodside will retain a 60% stake in Louisiana LNG LLC.

Stonepeak sees the Louisiana LNG project as a compelling opportunity with an attractive risk-return profile. James Wyper, Senior Managing Director at Stonepeak, lauds the project’s potential and partners in both Bechtel and Woodside. Woodside shares are down 0.82% at $11.54.

Read more: Woodside Energy Sells 40% Stake In Louisiana LNG Project For $5.7 Billion