Woodside finalizes EPC agreement with Bechtel for Louisiana LNG project

Woodside Energy Group has taken a critical step toward strengthening its position in the global LNG market by securing a revised engineering, procurement, and construction (EPC) agreement with Bechtel. This agreement advances the Louisiana LNG project, a cornerstone development with the potential to reshape LNG export opportunities in the United States. The project includes three LNG production trains designed to deliver an impressive total LNG production capacity of 16.5 million tonnes per annum (MTPA).

The Louisiana LNG project, formerly known as Driftwood LNG, is located in Calcasieu Parish, Louisiana. In October 2024, Woodside Energy Group expanded its footprint in the global LNG market by acquiring this fully permitted project through a $1.2 billion deal with Tellurian Inc. The acquisition aligns with Woodside’s strategy to meet the growing demand for natural gas while strengthening its LNG export opportunities.

Bechtel’s role in early-stage development

Under the revised Bechtel EPC agreement, the company will manage essential construction tasks, including early-stage site development and material procurement. To ensure timely progress, Woodside Energy Group has authorized Bechtel to proceed under a limited notice to proceed (LNTP). These efforts will support the Louisiana LNG project’s timeline for reaching a final investment decision (FID) by the first quarter of 2025.

The overall projected expenditure for the foundation phase of the Louisiana LNG project is forecasted to reach $1.3 billion. This sum is included in the broader development budget and aligns with initial forward cost estimates of $900 to $960 per tonne of LNG. With this competitive LNG pricing strategy, Woodside aims to strengthen its foothold in the global LNG market, ensuring its competitiveness among major industry players.

Expert insights on project milestones

Woodside Energy Group CEO Meg O’Neill emphasized that the revised Bechtel EPC agreement represents a significant step forward for the Louisiana LNG project. She noted that the competitive LNG pricing and the fully permitted status of the project make it particularly well-positioned in an uncertain market for large-scale energy developments. O’Neill also highlighted strong interest from potential strategic partners, as Woodside continues discussions to sell a 50% stake in the project.

With an overall LNG production capacity of 27.6 MTPA, the Louisiana LNG project is expected to become a critical player in the global LNG market. Energy analysts believe that the project’s scale and timeline will enable Woodside Energy Group to leverage new LNG export opportunities, addressing the global shift toward cleaner energy solutions.

Positioning Woodside for future energy needs

This development forms part of Woodside Energy Group’s broader strategy to expand its portfolio while reinforcing its role as a key supplier in the global LNG market. The Louisiana LNG project’s competitive LNG pricing and geographic location are designed to tap into lucrative LNG export opportunities, particularly as global energy demand evolves.

By strategically aligning its LNG production capacity with market demand, Woodside Energy Group is positioning itself to play a pivotal role in meeting the energy needs of a transitioning global economy. The company’s ability to maintain cost efficiency under the Bechtel EPC agreement underscores its commitment to delivering reliable energy solutions while achieving a strong return on investment.

A bold step forward for Woodside

The revised Bechtel EPC agreement signifies a pivotal moment for the Louisiana LNG project. With its focus on competitive LNG pricing and its ability to deliver substantial LNG production capacity, Woodside Energy Group is poised to make a significant impact on the global LNG market. As the company moves closer to its 2025 FID deadline, the Louisiana LNG project promises to bolster Woodside’s position as a leading force in the LNG industry.