To support its massive Louisiana LNG project in Lake Charles, Australia-based Woodside Energy Group has signed a gas supply deal with British energy giant BP.
The agreement will see Louisiana LNG Gas Management LLC, a wholly owned subsidiary of Louisiana LNG LLC, purchase natural gas from BP on a long-term basis—up to 640 billion cubic feet worth, Woodside says. The financial terms of the deal have not been disclosed.
According to a statement from Woodside, the agreement represents the first tranche of a “diversified portfolio of feedgas” that will support the Louisiana LNG facility, enabled by the facility’s interconnectivity to multiple producing basins and pipelines.
Woodside CEO Meg O’Neill says the deal marks yet another milestone for the $17.5 billion project.
“Louisiana LNG is a compelling investment, expected to deliver significant cash generation and create long-term shareholder value,” a statement from O’Neill reads. “Securing this gas supply agreement is an important step for the project.”
Gov. Jeff Landry, joined by Woodside executives and state and local officials, formally announced the Australian oil and gas major’s final investment decision on its Lake Charles facility in a press conference on Tuesday. Read more about the project here.
The facility—the largest foreign direct investment in Louisiana history—will produce up to 16.5 million metric tons of liquefied natural gas per year once operational in 2029. The project is expected to support thousands of jobs during the construction phase and create an unspecified number of direct new jobs once the facility is up and running.
Woodside acquired the project, formerly known as Driftwood LNG, with its $1.2 billion acquisition of Houston-based Tellurian Inc. in 2024. Earlier this month, Woodside agreed to sell a 40% stake in the facility to New York City-based infrastructure investment firm Stonepeak for $5.7 billion.
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