Woodside Energy is strategically positioned to benefit from the growing demand for US liquefied natural gas (LNG), influenced by trade policies and a pro-fossil fuel agenda.
Woodside CEO Meg O’Neill highlighted the impact of these factors on the company's $1.2bn (A$1.9bn) investment in the Louisiana LNG project, reported Reuters.
The Trump administration's focus on reducing the trade deficit by encouraging allies to purchase more US goods has created opportunities for Woodside's Louisiana LNG project.
"Many of the customers we talked to or tendered to are progressing LNG procurement deals with us because they want to be able to then say, 'We've adjusted our balance of trade'," O’Neill stated.
Woodside acquired Tellurian to develop the 27.6 million tonnes (mt) per year Louisiana LNG project, previously known as Driftwood.
The company plans to make a final investment decision (FID) by the first quarter of 2025 (Q1 2025), the report said.
Despite initial concerns about Woodside's US acquisitions, including a major ammonia project, the company's stock rose 2.8% on Tuesday, with better-than-expected earnings and dividends.
Woodside reported a 13% drop in annual underlying profit to $2.88bn, slightly above the Visible Alpha consensus of $2.83bn.
The company declared a final dividend of $0.53 per share, surpassing the consensus of $0.51.
O’Neill emphasised the competitive advantage of the Louisiana LNG project in terms of cost, commercial and scheduling factors, which could command a price premium.
"We are at least a year ahead of everybody else in the US, and we continue to attract a premium from many players who are interested or seriously interested in US LNG," O’Neill noted.
Woodside has engaged in discussions with potential buyers including Tokyo Gas, Japan's JERA and Saudi Aramco-backed MidOcean Energy to sell up to half its stake in the project.
O’Neill highlighted the benefits of US trade policies saying Trump’s promotion of oil and gas was a “very clear pro” for Woodside.
She downplayed concerns about potential competition from a proposed Alaska LNG project, stating: "It is very expensive to develop and will take a very long time. I am not particularly concerned about developments that will come online in a decade's time."
