Feb 18, 2025 (MarketLine via COMTEX) --
According to sources, potential buyers include Tokyo Gas, JERA and Saudi Aramco-backed MidOcean Energy.
Woodside Energy is in discussions with several potential partners to sell stakes in its Louisiana liquefied natural gas (LNG) project, reported Reuters.
According to sources, potential buyers include Tokyo Gas, JERA and Saudi Aramco-backed MidOcean Energy. A
The stake sale comes at a time when US President Donald Trump has advocated for trade partners to buy more US energy.
The Louisiana LNG project offers an opportunity for global buyers to diversify their supply base and potentially avoid US tariffs by contributing to a narrower trade deficit, a point of contention for Trump.
Reuters reported that it had interviewed seven sources familiar with the matter.
All seven confirmed that Tokyo Gas held discussions with Woodside, five indicated that JERA was also involved in talks, and four stated that MidOcean had participated in discussions as well.
JERA, MidOcean Energy, Saudi Aramco and Tokyo Gas declined to provide comments.
US pipeline operator Williams Companies has also shown interest, although it did not respond to requests for comment.
Woodside is expected to decide on the sale of a 50% stake in the first phase of the LNG export project, estimated to cost around $16bn (A$25.16bn).
The first phase of the Louisiana LNG project is projected to produce 11 million tonnes per annum (mtpa) of LNG, with the entire project expected to yield 27.6mtpa upon completion.
Woodside has declined to comment on the specifics of the bidding but previously stated that the project is progressing as planned and has attracted significant interest.
In addition to seeking partners, Woodside is also negotiating for higher gas contract prices, citing increased construction costs and lower development risks, as all necessary permits for the plant have been secured.
The company is proposing liquefaction fees of $2.70aEUR"2.90 per million British thermal units for ten to 20 year contracts, slightly above current market rates.
Woodside CEO Meg O'Neill has expressed the company's desire for clarity on partnering strategies before finalising investment decisions, aiming to bring partners into the Louisiana LNG project by March 2025.
Woodside acquired the Louisiana LNG project as part of its $1.2bn purchase of Tellurian in October 2024.
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