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synopsis
Woodside Energy (WDS) stock garnered retail attention on Monday after the company decided to move forward with the development of the $17.5 billion Louisiana LNG project.
The company said it would build the project in stages, with the first three trains expected to produce 16.5 million tonnes per annum (Mtpa) of liquefied natural gas. The project has a total approved capacity of 27.6 Mtpa.
Australia’s Woodside said it expects its first LNG from the project in 2029.
U.S.-based investment firm Stonepeak would provide $5.7 billion of the initial investment after Woodside agreed to sell a 40% stake in the project earlier this month.
Louisiana LNG will position Woodside as a “global LNG powerhouse,” the company said, enabling it to deliver approximately 24 Mtpa from its global LNG portfolio in the 2030s and operate over 5% of the global LNG supply.
Woodside had bought Louisiana LNG through its $900 million acquisition of U.S.-listed Tellurian last year.
Several analysts have said that demand for U.S. LNG could surge as countries seek to reduce their trade deficit with the U.S. by purchasing more energy amid tariff concerns. The U.S. is already the world’s top LNG exporter.
Woodside’s share of total capital expenditure for the project, barring any further stake sale, is $11.8 billion. Bloomberg News reported earlier that the firm is in talks with the overseas unit of Kuwait Petroleum Corp for a stake sale in the project.
Retail sentiment on Stocktwits moved to ‘neutral’ (50/100) territory from ‘bearish’(29/100) a day ago, while retail chatter was ‘low.’
Early retail chatter following the news indicated investor enthusiasm for the development.
Woodside’s U.S.-listed shares have fallen 17.5% year-to-date (YTD).
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