Stonepeak to Acquire 40% Stake in Woodside’s Louisiana LNG Project

Stonepeak, a prominent infrastructure investment firm, has agreed to purchase a 40% interest in Louisiana LNG Infrastructure LLC, a liquefied natural gas (LNG) terminal currently under development in Calcasieu Parish, Louisiana. The terminal is owned by Australia-based energy giant Woodside Energy Group.

Strategically located on the Gulf Coast, the Louisiana LNG project is positioned to tap into abundant U.S. natural gas supplies and offer direct access to global markets via the Gulf. With a fully permitted capacity of 27.6 million tonnes annually, the project is nearing a final investment decision (FID) for its initial phase, and construction is already underway. The engineering, procurement, and construction (EPC) is being handled by industry leader Bechtel, while Woodside will remain the project operator once the deal is finalized.

James Wyper, Senior Managing Director and Head of U.S. Private Equity at Stonepeak, emphasized the project's significance: “Louisiana LNG presents a strategic opportunity to invest in a large-scale export terminal close to reaching FID, with a favorable risk-return outlook and support from strong partners like Woodside and Bechtel.”

The transaction, valued at approximately $5.7 billion, is expected to close in the second quarter of 2025, pending final investment approval and regulatory clearance. As part of the agreement, Stonepeak will cover 75% of capital expenditures in 2025 and 2026, a move that significantly eases the financial burden on Woodside and enhances the project's economic outlook.

Woodside CEO Meg O’Neill expressed confidence in the partnership, noting that Stonepeak’s extensive experience in U.S. energy infrastructure adds significant value. “Bringing in Stonepeak validates Louisiana LNG’s attractiveness on a global scale and allows us to accelerate progress while opening the door for additional strategic investors,” she said.

Woodside initially acquired the Louisiana LNG project—formerly known as Driftwood—through its $1.2 billion acquisition of Tellurian assets. The company plans to phase development of the facility to meet rising global demand for LNG, with the first phase estimated to cost around $16 billion. This initial investment is expected to deliver 16.5 million tonnes per year at a cost of $900–$960 per installed tonne.

Analysts see the Stonepeak deal as a crucial step toward Woodside’s goal of reducing its overall stake in the project to about 50%. MST Marquee energy analyst Saul Kavonic described the agreement as a "balance sheet fix" that alleviates investor concerns about Woodside's funding capabilities, while also giving it the flexibility to advance toward FID without being locked into offtake or equity arrangements.

Future equity sales are still expected, with Woodside reportedly in discussions with potential partners such as Tokyo Gas, JERA, and MidOcean Energy. Kavonic estimates that Woodside may still need to divest another 20–30% of its stake to meet its targeted capital reduction.

This partnership follows Woodside’s successful model used in its Scarborough LNG venture in Australia, where Global Infrastructure Partners and others were brought on board to share development costs and reduce risk. Similarly, the inclusion of Stonepeak allows Woodside to pursue potential partnerships for the Louisiana project’s holding company and associated LNG supply and offtake elements.

Stonepeak, which manages roughly $72 billion in assets, focuses on long-term investments in sectors such as energy, infrastructure, and real estate. With this acquisition, the firm strengthens its foothold in the rapidly expanding U.S. LNG export market, which has seen the U.S. emerge as the world’s top LNG exporter, powered by the country’s extensive shale gas production.

Woodside has stressed the project’s advantage over competitors due to its full permitting status, giving it a head start in a competitive field of U.S. gas export ventures. However, while the investment bolsters Woodside’s near-term ability to return value to shareholders, it also invites scrutiny from environmental advocates concerned about the project’s long-term climate implications.

The deal not only marks a financial milestone but also signals a broader strategic push by both firms to capitalize on surging global demand for reliable, scalable energy solutions amid ongoing market volatility and geopolitical uncertainty.