Woodside Energy, Australia’s leading gas producer, announced on Wednesday that it has entered into a non-binding agreement with Saudi Arabian company Aramco to explore potential opportunities. This includes the possibility of Aramco acquiring a stake in Woodside’s Louisiana LNG project.
Last month, Woodside approved the $17.5 billion liquefied natural gas (LNG) project in Louisiana, confident that a favorable U.S. administration and strong demand from Europe and Asia would provide competitive returns.
The approval followed Woodside’s deal to sell a 40% stake in the project to U.S. infrastructure investor Stonepeak, who will contribute $5.7 billion to the project’s capital costs.
Woodside is now looking to sell an additional 20-30% stake in the Louisiana LNG project.
CEO Meg O’Neill highlighted that the partnership with Aramco further underscores the growing interest in Louisiana LNG from high-quality investors.
The LNG project is expected to start delivering gas by 2029. Both companies are also exploring potential opportunities for LNG offtake and collaboration on lower-carbon ammonia.
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