Oct 23 (Reuters) - U.S.-based gas pipeline operator

Williams will invest $1.9 billion in Woodside Energy's ( WDS )

$17.5 billion liquefied natural gas production and

export terminal under construction in Louisiana, the companies

said.

Under the agreement, Williams will own a 10% stake in the

project's holding company and 80% of the Driftwood pipeline that

will supply natural gas to the Louisiana LNG project.

In April, Woodside sold a 40% stake in Louisiana LNG's

infrastructure company to U.S. investor Stonepeak for $5.7

billion.

Woodside said it expected total proceeds of $378 million

from the latest deal, cutting its total capital spending on the

project to $9.9 billion from a previous estimate of $11.8

billion.

Shares in the Australian company gained as much as 4.1% to

A$24.11 in Sydney on Thursday, hitting their highest level since

September 17.

Williams will receive a 1.5 million metric tons per annum

(mtpa) share of production from Louisiana LNG as well as 10% of

a 1 mtpa offtake deal Woodside previously signed with Uniper

, the companies said.

U.S. President Donald Trump's administration has looked to

boost oil and gas production and exports. Since Trump returned

to office in January, more than 65 mtpa of additional U.S. LNG

capacity has gotten the financial go-ahead.

Louisiana LNG, which is expected to have a capacity of 16.5

mtpa when it produces first LNG in 2029, was the first export

project to get to a final investment decision in the U.S. in

2025.

Trump has urged trade partners to boost imports of American

energy and has issued a flurry of executive orders to accelerate

domestic oil and gas production.