Stonepeak to Acquire Interest in Woodside’s Louisiana LNG

Rhea-AI Summary

Stonepeak has agreed to acquire a 40% interest in Louisiana LNG Infrastructure, a liquefied natural gas production and export terminal owned by Woodside Energy Group (ASX: WDS, NYSE: WDS). The project, located in Calcasieu Parish, Louisiana, has a total permitted capacity of 27.6 million tonnes per annum.

The facility is approaching final investment decision (FID) for its foundation development, with construction already underway and front-end engineering design completed. Bechtel serves as the engineering, procurement, and construction contractor, while Woodside will continue to operate the facility post-transaction.

The transaction is anticipated to close in Q2 2025, subject to FID approval and other regulatory requirements. The deal resulted from a competitive process and will significantly reduce Woodside's capital expenditure for the project.

Positive

• 40% stake sale reduces Woodside's capital expenditure burden
• Project has substantial capacity of 27.6 million tonnes per annum
• Construction already underway with completed front-end engineering design
• Strategic location with direct access to US Gulf and natural gas resources

Negative

• Transaction completion dependent on multiple conditions including FID approval
• Significant construction and operational risks remain as project is not completed

Insights

Energy Infrastructure Investment Expert

Woodside's deal to sell a 40% stake in its Louisiana LNG project to Stonepeak represents a strategically significant transaction that substantially reduces Woodside's capital expenditure requirements while maintaining operational control. This capital-efficient approach allows Woodside to advance a major growth project while preserving financial flexibility for other initiatives.

The transaction follows an increasingly common model in large-scale energy infrastructure where developers bring in specialized infrastructure investors to share capital costs before final investment decision. What stands out is Woodside's mention of a "highly competitive process" with multiple bidders, suggesting strong investor appetite and favorable valuation terms for this asset.

For a project nearing FID with 27.6 million tonnes per annum of permitted capacity, bringing in a partner like Stonepeak—who specializes in infrastructure investments—reduces execution risk. Stonepeak brings not just capital but extensive experience in US gas and LNG infrastructure investments.

With construction already underway and Bechtel secured as the EPC contractor, many early-stage development risks have been mitigated. This partnership structure optimizes Woodside's capital allocation while maintaining the strategic and operational benefits of this Gulf Coast export facility. The transaction effectively balances growth objectives with financial discipline, a prudent approach given the capital-intensive nature of LNG developments.

LNG Market Specialist

The Louisiana LNG project represents a significant addition to US export capacity with its 27.6 million tonnes per annum permitted capacity. Located strategically in the Gulf Coast LNG corridor with proximity to gas resources and direct Gulf access, the terminal's positioning offers logistical advantages for serving global markets.

Stonepeak's investment affirms James Wyper's statement about the "critical role Louisiana LNG will play in the US LNG export market" and the "need to bring significant additional capacity online." This project has progressed beyond early development hurdles—completing front-end engineering design and securing Bechtel as EPC contractor enhances execution certainty.

The partnership structure mirrors successful models used in other major LNG developments, where specialized infrastructure investors share development costs while experienced operators manage the asset. With Woodside continuing as operator, the project maintains operational continuity while reducing capital burden.

For Woodside, this transaction allows them to advance a strategically important LNG asset while maintaining a controlling interest. The competitive bidding process mentioned by CEO Meg O'Neill suggests strong valuation metrics for the asset, indicating market confidence in both the project fundamentals and Woodside's development and operational capabilities. This deal structure positions both companies to capitalize on their respective strengths while sharing project risks.

NEW YORK--(BUSINESS WIRE)-- Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets, today announced an agreement to acquire a 40% interest in Louisiana LNG Infrastructure LLC (“Louisiana LNG” or the “Project”), a liquefied natural gas production and export terminal in Calcasieu Parish, Louisiana owned by Woodside Energy Group Ltd (“Woodside”)(ASX: WDS, NYSE: WDS).

The Project, positioned in the heart of the Gulf Coast LNG corridor with close proximity to natural gas resources and direct access to the US Gulf, has a total permitted capacity of 27.6 million tonnes per annum and is nearing final investment decision (FID) for the foundation development. Construction is currently underway, and the front-end engineering design has been completed. Bechtel, an industry leader in infrastructure project delivery, is the engineering, procurement, and construction (EPC) contractor for the Project. Woodside will continue to operate the Project following completion of the transaction.

“With the need to bring significant additional capacity online over the coming years, we have strong conviction in the critical role Louisiana LNG will play in the US LNG export market,” said James Wyper, Senior Managing Director and Head of US Private Equity at Stonepeak. “The Project represents a compelling opportunity to invest in a newbuild LNG export facility nearing FID approval with an attractive risk-return profile and best-in-class partners in both Bechtel and Woodside to construct and operate the asset.”

Woodside CEO Meg O’Neill said, “We are very pleased to have Stonepeak join us in Louisiana LNG, given their demonstrated track record investing in US gas and LNG infrastructure across LNG facilities, LNG carriers, and floating storage and regasification units. This transaction further confirms Louisiana LNG’s position as a globally attractive investment set to deliver long-term value to our shareholders. It is the result of a highly competitive process that attracted leading global counterparties and significantly reduces Woodside’s capital expenditure for this world-class project.”

The transaction is expected to close in the second quarter of 2025 subject to conditions precedent including final investment decision for the Louisiana LNG foundation development, as well as requisite regulatory, legal, and other customary approvals.

Mizuho Bank, Ltd and its affiliate Greenhill & Co., LLC and Santander US Capital Markets LLC served as financial advisors to Stonepeak. Simpson Thacher & Bartlett LLP served as transactional legal counsel and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as financing legal counsel to Stonepeak. RBC Capital Markets and Evercore served as financial advisors to Woodside. Norton Rose Fulbright served as legal counsel to Woodside.

About Stonepeak

Stonepeak is a leading alternative investment firm specializing in infrastructure and real assets with approximately $72 billion of assets under management. Through its investment in defensive, hard-asset businesses globally, Stonepeak aims to create value for its investors and portfolio companies, with a focus on downside protection and strong risk-adjusted returns. Stonepeak, as sponsor of private equity and credit investment vehicles, provides capital, operational support, and committed partnership to grow investments in its target sectors, which include digital infrastructure, energy and energy transition, transport and logistics, and real estate. Stonepeak is headquartered in New York with offices in Houston, Washington, D.C., London, Hong Kong, Seoul, Singapore, Sydney, Tokyo, and Abu Dhabi. For more information, please visit www.stonepeak.com.

About Woodside

Woodside is a global energy company providing reliable and affordable energy to help people lead better lives. We leverage our track record of world-class project execution and operational excellence as we build a diverse global portfolio to meet the world’s growing energy needs.

We have over 35 years of experience in the LNG industry including pioneering Australia's LNG industry as operator of the North West Shelf Project where we shipped our first LNG cargo to Japan in 1989. We are executing major projects today, while pursuing growth opportunities that will deliver long-term value for our shareholders. We maintain a strong balance sheet and a disciplined investment approach.

Forward-looking statements

This press release contains “forward-looking statements”, within the meaning of applicable U.S. and Australian securities laws, including with respect to market conditions, results of operations and financial condition, including, for example, but not limited to, statements regarding the transaction (including statements concerning the timing and completion of the transaction, the expected benefits of the transaction and other future arrangements between Stonepeak and Woodside), expectations regarding future expenditures and future results.

All statements, other than statements of historical or present facts, are forward-looking statements and generally may be identified by the use of forward-looking words such as ‘opportunity’, 'guidance', 'foresee', 'likely', 'potential', 'anticipate', 'believe', 'aim', 'estimate', 'expect', 'intend', 'may', 'target', 'plan', 'forecast', 'project', 'schedule', 'will', 'should', 'seek' and other similar words or expressions. Forward-looking statements in this press release are not guidance, forecasts, guarantees or predictions of future events or performance but instead represent expectations, estimates and projections regarding future events or circumstances. Those statements and any assumptions on which they are based are only opinions, estimates and assumptions that we considered appropriate and reasonable as of the date such information is stated and are subject to change without notice and are subject to inherent known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements.

Details of the key risks relating to Woodside and its business can be found in the "Risk" section of Woodside's most recent Annual Report released to the Australian Securities Exchange and Woodside's most recent Annual Report on Form 20-F filed with the United States Securities and Exchange Commission. Readers are strongly cautioned not to place undue reliance on any forward-looking statements. Actual results or performance may vary materially from those expressed in, or implied by, any forward-looking statements. All information included in this press release, including any forward-looking statements, speak only as of the date of this press release and neither Stonepeak nor Woodside undertake to update or revise any information or forward-looking statements contained within, whether as a result of new information, future events, or otherwise, except as required under applicable U.S. or Australian securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250405317762/en/

Stonepeak:

Kate Beers / Maya Brounstein

corporatecomms@stonepeak.com

+1 (646) 540-5225

Jack Gordon

jack.gordon@sodali.com

+61 478 060 362

Woodside:

Christine Forster

christine.forster@woodside.com

+61 484 112 469

Source: Stonepeak

FAQ

What is the capacity of Woodside's Louisiana LNG facility?

The Louisiana LNG facility has a total permitted capacity of 27.6 million tonnes per annum.

How much of Louisiana LNG is Stonepeak acquiring from Woodside (WDS)?

Stonepeak is acquiring a 40% interest in Louisiana LNG Infrastructure from Woodside Energy Group.

When is the Stonepeak-Woodside (WDS) Louisiana LNG deal expected to close?

The transaction is expected to close in the second quarter of 2025, subject to conditions including FID approval.

Who will operate the Louisiana LNG facility after Stonepeak's acquisition?

Woodside will continue to operate the Louisiana LNG facility following the completion of the transaction.

What is the current development status of Woodside's (WDS) Louisiana LNG project?

Construction is underway, front-end engineering design is completed, and the project is nearing final investment decision (FID).