Oct 23 (Reuters) -

U.S.-based Williams will spend $1.9 billion on the

development of LNG facilities and a pipeline for Australian gas

producer Woodside Energy's ( WDS ) $17.5 billion liquefied

natural gas project in Louisiana, the companies said.

The pipeline operator will take up a 10% stake in the

Louisiana LNG Infrastructure LLC and will also simultaneously

buy an 80% interest and operatorship of the Driftwood pipeline

for $250 million, Williams said on Wednesday.

Woodside is expecting to receive total proceeds of $378

million under the agreement, Australia's top energy firm said in

a separate announcement on Thursday.

Woodside's total capital expenditure for the project is

now expected to be $9.9 billion, reduced from a previous

estimate of $11.8 billion.

Furthermore, Williams' total LNG entitlement from the

Louisiana LNG project will amount to 1.6 million tonnes per

annum (Mtpa), comprising about 1.5 Mtpa under its own supply

agreement.

The company will also benefit proportionately from 10% of

the project's 1.0 Mtpa offtake deal previously signed with

Uniper.