With 2026 just around the corner, the energy market is preparing for the new year and contemplating where and how to expand operations. Woodside, an Australian major with operations spanning the length and breadth of the globe, has announced its expansion plans for the next decade, with LNG in particular seeing vast increases in output. The company has become a global leader in the upstream sector and boasts operations that are set to scale up over the next ten years as the world aims to phase out Russian energy in all its various forms.
Liquefied Natural Gas is set to see an increase in demand over the next decade
The LNG sector is set to experience a boom in production over the coming years as demand for the energy resource skyrockets. LNG is an important driver in the energy transition as it is nowhere near as harmful to produce as oil. However, the natural resources needed to produce it are most times buried deep underground or off the coast deep underwater.
Extracting the LNG can be hugely expensive as well, leading most nations contemplating an expansion into the sector to rely on outside investment and expertise to successfully extract, produce, and transport the LNG through sophisticated pipelines or cargo ships. With the latest round of sanctions on Russian energy resources influencing markets around the world, LNG has and will continue to be a cornerstone of the upstream sector.
Woodside outlines a new expansion of its already impressive energy portfolio as the new year closes in
Woodside recently outlined its plans to expand LNG production over the next decade as demand is set to increase substantially. Not only that, but the company also expects its upstream oil portfolio to expand as well, with growth projected at an annual rate of 6%. The company notes that oil sales could increase to approximately 300 million barrels of oil equivalent in 2032.
Woodside has noted the forecasted expansion of its LNG sector in the next few years
The company’s oil output is one thing, and a promising one at that, but where the real growth is expected is in its LNG output, with the company’s management expecting operations to ramp up significantly over the next decade. The firm notes it expects its annual production of LNG to hit around 40 million tons in 2032.
“With global LNG demand forecast to grow 60% by 2035, Woodside’s increasing scale across the Atlantic and Pacific basins, combined with our marketing and trading business, optimises our capability to meet customer needs.” – Woodside chief executive Meg O’Neill
Woodside is preparing for the Scarborough LNG facility to start production in 2026, adding 8 million tons in annual production capacity to its already vast portfolio. Furthermore, the company notes that it also expects to see the Louisiana LNG plant add another 16.5 million tons in capacity. The firm broke ground on the project in September and, through its expansion of LNG production, could bring its annual capacity to approximately 27.6 million tons.
With other energy majors reporting a decline in gas output during Q3 of 2025, the planned increase in gas output by Woodside exemplifies the adaptability of the sector.
Woodside could potentially play an integral role in LNG supply to Europe
Woodside’s impressive LNG expansion is coming at just the right time for the energy industry. The new wave of sanctions on Russia has had an immediate impact on LNG production and output, and the world aims to end the flow of Russian energy into the market due to Putin’s continued “special military operation” in Ukraine. In order to compensate for the loss of LNG from Mother Russia, other companies might see an increase in orders as demand for non-Russian energy grows to unprecedented levels over the next few years.
