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FERC said on Thursday it has granted May 13 request by Louisiana LNG and Driftwood Pipeline for an extension of time request to complete construction and place the project into service.
“Based on the facts presented in the request and the case record, the applicants are granted an extension of time until and including December 31, 2029 to complete construction of its Woodside Louisiana LNG and Driftwood Pipeline projects and make them available for service,” FERC said.
In April this year, the Australian LNG player made a final investment decision to develop the three-train, 16.5 mtpa Louisiana LNG project, which it acquired from Tellurian last year.
In October 2024, Woodside acquired Tellurian for about $1.2 billion. Woodside also renamed Tellurian’s Driftwood LNG project Woodside Louisiana LNG.
Earlier the same year, Tellurian won more time from FERC to complete the construction of the LNG project and the pipeline in Louisiana.
The LNG terminal and the pipeline secured a three-year extension of time, until April 18, 2029.
Additional equity sell-downs and offtake deals
Woodside’s units said in the May request that the addition extension is required to align the in service date in the order with the updated schedule milestones under Louisiana LNG’s EPC contract with Bechtel, which were revised to more accurately reflect the status of project construction after Woodside’s acquisition of Tellurian.
“Although Louisiana LNG and Driftwood Pipeline have worked diligently to develop and execute the timely construction of the project, making good faith efforts to meet the service commencement deadline stipulated in the 2024 extension order, Louisiana LNG and Driftwood Pipeline, through extensive discussion with Bechtel, have determined that a minor extension of time is required,” Woodside’s units said.
“Further, while the current planned in-service deadline is still several years away, an extension of time is required at this juncture in order to support additional equity sell-downs, which Woodside Energy is currently progressing, as well as offtake agreements and other arrangements with third parties to progress the development of the project, all of which require that Louisiana LNG and Driftwood Pipeline’s authorizations remain legally valid throughout the construction of the project,” they said.
In April, Woodside agreed to sell 40 percent of its Louisiana LNG project to US private equity firm Stonepeak.
Stonepeak will provide $5.7 billion towards the expected capital expenditure for the LNG project on an accelerated basis, contributing 75 percent of capital expenditure in both 2025 and 2026.
In addition, Woodside signed a non-binding collaboration agreement with Saudi Arabia’s energy behemoth Aramco to explore global opportunities.
This includes Aramco’s potential acquisition of an equity interest in and LNG offtake from the Louisiana LNG project.