The LNG market within Louisiana has been a hotbed of activity, spanning new construction projects and turnaround work for existing infrastructure. Maintaining that theme, Woodside Energy of Australia recently announced a supply agreement with BP for natural gas directed at its Louisiana LNG project, which resides in close proximity to Cameron LNG Hackberry’s facility that is entering into turnaround mode.
With a long-term outlook, the Louisiana project would purchase upwards of 640 billion cubic feet of gas, but Woodside declined to discuss the financial makeup of the deal. From a supply perspective, however, Louisiana LNG would play a large role in Woodside’s ability to produce approximately 24 million tons per annum (Mtpa) from its total global portfolio during the next ten years.
“Louisiana LNG is a compelling investment, expected to deliver significant cash generation and create long term shareholder value,” said Meg O’Neill, Woodside CEO, in a recent press release. “Securing this gas supply agreement is an important step for the project.”
If project expectations come to fruition, Woodside’s portfolio would contribute more than five percent of the global LNG supply and play a critical role in meeting demand in Asia and Europe. For Woodside, this equates to a potential $2 billion in yearly net operating cash with a 13 percent internal return rate and seven year payback period.
“Woodside has a long history of successful collaboration with BP,” added O’Neill. “By drawing upon bp’s experience with MiQ certificates, we can access verifiably low methane intensity molecules for the Louisiana LNG project. This supports Woodside’s goals as a member in the UN Environment Programme’s OGMP 2.0 initiative.”
Woodside’s LNG footprint is not only rooted in the Louisiana project. The company signed an agreement in 2022 with China Resources Gas International to export LNG to the country, which proved historic as the first contractual supply agreement between an Australian and a Chinese company in several years.
“This marks the first time Woodside, on a standalone basis, has signed a long-term sale agreement with a customer in China,” Executive Vice President & Chief Commercial Officer Mark Abbotsford said in a previous statement. “It’s also the first time China Resources has signed an agreement to procure LNG over a period of 15 years.”
With its current portfolio including investments made with China and its Louisiana LNG project, Woodside seeks to position itself as a major player in the LNG sector. The company released a statement on Tuesday, April 29, 2025 and said, “Adding Louisiana LNG to our established Australian LNG business provides Woodside with a balanced and resilient portfolio, combining long-life, flexible LNG assets with high-return oil assets. The project benefits from access to abundant low-cost gas resources in the United States and boasts an asset lifespan of more than 40 years. It also has access to well-established interstate and intrastate gas supply networks. The marketing opportunities Louisiana LNG offers across the Pacific and Atlantic Basins leverages Woodside’s proven LNG marketing capabilities and complements our established position in Asia. This will position Woodside to even better serve global customers and meet growing energy demand.”
Nick Vaccaro is a freelance writer and photographer. In addition to providing technical writing services, he is an HSE consultant in the oil and gas industry with twelve years of experience. Vaccaro also contributes to SHALE Oil and Gas Business Magazine, American Oil and Gas Investor, Oil and Gas Investor, Energies Magazine and Louisiana Sportsman Magazine. He has a BA in photojournalism from Loyola University and resides in the New Orleans area. Vaccaro can be reached at 985-966-0957 or [email protected].
