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Woodside Energy and Aramco have signed a non-binding agreement encompassing Aramco's potential acquisition of an equity stake in Woodside's Louisiana LNG project and a corresponding LNG offtake agreement. Furthermore, the two energy giants will jointly investigate prospects for collaboration in the field of lower-carbon ammonia production.

The collaboration agreement was inked in Riyadh during the Saudi-US Investment Forum on May 14. The high-profile event witnessed the presence of Saudi Arabian Crown Prince and Prime Minister Mohammed bin Salman and US President Donald Trump.

Woodside CEO Meg O鈥橬eill expressed her enthusiasm for the collaboration, stating, 鈥淲e are excited to explore new opportunities with Aramco. This collaboration aligns with Woodside鈥檚 strategic vision to build a diverse and resilient global portfolio. It leverages our growing relationship with one of the world鈥檚 leading integrated energy and chemicals companies, to explore new opportunities which deliver value for both parties.鈥�

The potential for Aramco to acquire an equity interest in the Louisiana LNG project marks a significant endorsement for the development. Located in Louisiana, the proposed three-train, 16.5 million tonnes per annum (Mtpa) LNG export terminal represents a key component of Woodside鈥檚 strategy to expand its global LNG footprint. Woodside made a final investment decision to proceed with the Louisiana LNG project on April 29, 2025, with the company targeting the commencement of LNG production in 2029.

Beyond the LNG venture, the collaboration extends to exploring opportunities in lower-carbon ammonia. This aspect of the agreement highlights both companies' growing commitment to exploring and investing in cleaner energy solutions. Lower-carbon ammonia is increasingly recognized as a potential fuel source and a carrier for hydrogen, playing a crucial role in the global energy transition. By combining their respective expertise and resources, Woodside and Aramco aim to identify and potentially develop viable projects in this evolving sector.

O鈥橬eill further emphasized the significance of this collaboration in the context of the Louisiana LNG project, noting, 鈥淚t is also another demonstration of the ongoing interest Louisiana LNG is generating among high-quality potential investors, following our recent agreement with Stonepeak to acquire a 40% interest in the project鈥檚 infrastructure holding company.鈥� This statement underscores the growing confidence in the Louisiana LNG project and its attractiveness to major global energy players and infrastructure investors alike.

While the current agreement is non-binding, it lays a strong foundation for future definitive agreements and joint ventures between Woodside and Aramco. The collaboration signifies a strategic alignment between two major energy producers, poised to leverage their strengths in both traditional and new energy sectors.