Woodside Energy has signed a revised contract with construction giant Bechtel for the engineering, procurement and construction (EPC) of the Louisiana LNG project.
The contract covers the foundation development of the project’s three production trains with a combined capacity of 16.5 million tonnes per annum (mtpa).
Bechtel has been engaged on the site since Woodside's acquisition of the project and will continue its work under a limited notice to proceed (LNTP).
The LNTP allows for ongoing site construction and secures essential materials and services for the foundation project.
The Louisiana LNG project comprises an LNG production facility and export terminal currently being constructed in Calcasieu Parish, Louisiana.
This project presents a significant, high-quality, scalable development opportunity, boasting a total permitted capacity of 27.6mtpa.
Woodside is aiming for an FID on the project by Q1 2025.
The total spending on the Louisiana LNG project from December to the end of Q1 2025 is expected to reach up to $1.3bn and is part of the overall foundation development cost.
The estimated forward cost for the foundation development remains unchanged at $900–960 per tonne, consistent with the range at the time of acquisition.
Woodside CEO Meg O’Neill said: “Louisiana LNG is positioned to provide LNG into the growing global market and generate value for shareholders in accordance with our capital allocation framework.
“We continue to move at pace. In a short period of time, we have completed the acquisition, secured competitive revised EPC pricing that covers all three trains and opened the data room with strong interest from potential project partners.
“Louisiana LNG is an advantaged project that is fully permitted and has Bechtel as the EPC contractor. The competitive pricing and schedule certainty we have now secured compounds this advantage in the current uncertain market environment for competing projects.”
The Louisiana LNG project represents a substantial growth opportunity for Woodside, enhancing its presence in the US LNG market. It will allow the company to more effectively meet the needs of global clients and seize marketing optimisation prospects across both the Atlantic and Pacific Basins.
Last month, Woodside completed the sale of a 15.1% stake in the Scarborough joint venture to Japan's JERA, receiving approximately $1.4bn.
This follows their February announcement of an expanded partnership with JERA, including equity, LNG offtake and collaboration on new energy opportunities.
