Woodside assessing tariff impact on Louisiana LNG

“Louisiana LNG has a foreign-trade zone, enabling the project to defer payment of tariffs until completion of each LNG train,” O’Neill said in Woodside’s quarterly report on Wendesday.

“We are assessing the potential impacts of recent tariff announcements and potential further trade measures on Louisiana LNG. Around 25 percent of Louisiana LNG’s estimated capital expenditure is equipment and materials, approximately half of which is currently expected to be sourced from the US,” she said.

In October 2024, Woodside acquired all issued and outstanding Tellurian common stock for about $900 million cash, or $1.00 per share. The implied enterprise value is about $1.2 billion.

Woodside also renamed Tellurian’s Driftwood LNG project Woodside Louisiana LNG.

In December 2024, Woodside signed a revised engineering, procurement, and construction (EPC) contract with US engineering and construction firm Bechtel for the Louisiana LNG export project.

The lump sum turnkey deal is for the three-train 16.5 million tonnes per annum foundation development of Louisiana LNG.

Woodside said total Louisiana LNG expenditure from December 2024 to the end of the first quarter of 2025 is forecast to be up to $1.3 billion, which is included in the overall estimated cost for the foundation development.

FID

“We are progressing at pace towards a final investment decision on Louisiana LNG, positioning Woodside as a global LNG powerhouse,” O’Neill said.

She said that the company passed a “major” milestone on April 7, announcing the sale of
a 40 percent interest in the infrastructure entity to US private equity firm Stonepeak.

According to O’Neill, the accelerated capital contribution from Stonepeak enhances Louisiana LNG returns, reduces Woodside’s capital commitments, and strengthens Woodside’s near-term capacity for shareholder distributions.

Moreover, the “exceptional” value proposition offered by Louisiana LNG was further demonstrated by the recent agreement for long-term supply of LNG to Germany’s Uniper, “whose leadership in European energy markets make it an ideal foundation customer for the project,” she said.

Woodside’s Louisiana LNG will supply 1 mtpa of LNG on a free-on-board basis for up to thirteen years from the commercial operations date (COD) of the project.

In addition, Woodside Energy Trading Singapore will supply up to 1 mtpa of LNG on a delivered ex-ship basis from Woodside’s global portfolio into Europe, commencing with Louisiana LNG’s COD over a term until 2039.

“We are pleased with the strong level of interest from potential strategic partners and are advancing discussions targeting further equity sell-down in Louisiana LNG,” O’Neill added.

Results

Woodside reported quarterly revenue of $3,315 million, down 5 percent from the prior quarter, primarily due to lower production and lower oil-linked prices.

According to Woodside, quarterly revenue increased 13 percent from the first quarter of 2024 due to the start-up of Sangomar in July 2024 and high gas hub-linked prices.

Woodside said quarterly production of 49.1 MMboe (546 Mboe/day was down 4 percent from the prior quarter due to weather impacts at NWS and unplanned outages at Pluto.

Quarterly production increased 9 percent from the first quarter of 2024 due to the addition of Sangomar production.