Woodside Energy (ASX:WDS) has approved a final investment decision to develop the Louisiana LNG Project, a three-train facility with a capacity of 16.5 million tonnes per annum, targeting first production in 2029.
The $17.5 billion development, which has an expansion capacity up to 27.6 Mtpa, is set to position Woodside as a global LNG powerhouse, delivering around 24 Mtpa from its portfolio in the 2030s—representing over 5% of global LNG supply.
Woodside expects the project to generate approximately $2 billion in annual net operating cash at full capacity, contributing to more than $8 billion from its global operations during the next decade.
The investment delivers an internal rate of return above 13% and a payback period of seven years.
Stonepeak will invest $5.7 billion toward the project, accelerating funding through 2025 and 2026, while Woodside's share of total capital expenditure is estimated at $11.8 billion.
Woodside emphasised that its greenhouse gas emissions reduction targets remain unchanged following the decision.
CEO Meg O'Neill hailed Louisiana LNG as a "game-changer" that strengthens Woodside's portfolio by adding US low-cost gas assets to its Australian base, offering marketing opportunities across the Pacific and Atlantic basins.
The project, the largest single foreign direct investment in Louisiana's history, is expected to support around 15,000 jobs during construction and marks the first greenfield US LNG project to reach a final investment decision since July 2023.