Woodside Energy Approves $17.5 Billion Louisiana LNG DevelopmentUpdate

By David Winning

SYDNEY--Woodside Energy approved the $17.5 billion development of the Louisiana LNG development, betting on strong demand for traditional fuels and the U.S. as a key supplier of natural gas to the global market.

Woodside, which acquired the Louisiana LNG project through the takeover of Tellurian last year, said it expects to produce liquefied natural gas for the first time in 2029.

"The project benefits from access to abundant low-cost gas resources in the United States and boasts an asset lifespan of more than 40 years," said Chief Executive Meg O'Neill.

Woodside plans to develop Louisiana LNG in stages. The first phase involves construction of units able to produce 16.5 million metric tons of LNG annually, although Woodside holds permits to produce as much as 27.6 million tons of LNG per year.

Louisiana LNG is part of a pipeline of projects that Woodside owns as it seeks to play a bigger role in supplying global natural-gas markets. These developments include the Scarborough gas project in Australia, which is 82% complete and on track for its first LNG cargo in the second half of 2026.

Woodside said on Tuesday that it would operate more than 5% of global LNG supply once the Louisiana LNG project starts up, citing data from consultancy Wood Mackenzie.

Write to David Winning at david.winning@wsj.com