Woodside Reviews Trump Tariffs' Effect on $1.2B Louisiana LNG Project
- 23-Apr-2025 9:30 PM
- Journalist: S. Jayavikraman
Woodside Energy, Australia鈥檚 largest gas producer, is reviewing the potential impact of recent U.S. trade policies on its $1.2 billion liquefied natural gas (LNG) project in Louisiana. The company, which acquired the project from Tellurian last year, aims to become a global LNG leader. The first of four planned development phases carries a projected cost of $16 billion.
In a quarterly update released Wednesday, CEO Meg O鈥橬eill said the company is 鈥渁ssessing the potential impacts of recent tariff announcements and potential further trade measures on Louisiana LNG.鈥� The move follows President Donald Trump鈥檚 decision to impose broad tariffs on nearly all U.S. trading partners.
Although the LNG facility is located within a designated foreign-trade zone鈥攁llowing for deferred tariff payments until each production train is completed鈥擶oodside expects to import a significant portion of the required materials and equipment.
鈥淎pproximately 25% of Louisiana LNG鈥檚 capital expenditure relates to equipment and materials, and about half of that is anticipated to be sourced from outside the United States,鈥� O鈥橬eill said.
To enhance the project鈥檚 economic viability, Woodside recently sold a 40% stake in the LNG export terminal to U.S.-based investment firm Stonepeak. Under the agreement, Stonepeak will fund 75% of the project鈥檚 capital expenditures in 2025 and 2026. The company also signed its first LNG offtake deal, securing a contract with Germany鈥檚 Uniper for 1 million metric tons per year.
鈥淲e are pleased with the strong level of interest from potential strategic partners and are advancing discussions targeting further equity sell-down,鈥� O鈥橬eill said. 鈥淲e are progressing at pace towards a final investment decision on Louisiana LNG, positioning Woodside as a global LNG powerhouse.鈥�
The update coincided with Woodside reporting first-quarter revenue of $3.32 billion, boosted by strong gas hub-linked pricing and the start-up of the Sangomar oil project in Senegal. The result exceeded analysts鈥� expectations, which averaged $2.79 billion, and marked a 13% increase from the $2.95 billion posted in the same quarter last year.
However, quarterly revenue declined 5% compared to the previous quarter. The dip was attributed to falling oil-linked prices, weather disruptions from a cyclone at the North West Shelf project, and unplanned outages at the company鈥檚 Pluto LNG facility.
Woodside maintained its full-year 2025 production and capital expenditure guidance.
