On Sunday, Woodside Energy Group ( WDS ) inked a binding deal to sell a 40% stake in Louisiana LNG Infrastructure LLC to Stonepeak.

As per the deal, Stonepeak plans to invest $5.7 billion in the development of the three-train, 16.5 mtpa foundation phase of Louisiana LNG.

The investment is expected to cover 75% of capital expenditure in 2025 and 2026, with development starting on January 1, 2025.

This significantly eases Woodside's capex burden, improves project economics, and strengthens cash flow ahead of revenue from its Scarborough Energy Project in Australia—enhancing capacity for shareholder returns.

The remaining 60% stake will be retained by Louisiana LNG LLC (HoldCo), operated by Woodside.

Meanwhile, InfraCo, managed by Woodside, holds the EPC agreement with Bechtel and, pending a final investment decision, will own and build the liquefaction infrastructure and shared facilities.

Under this arrangement, HoldCo will manage gas supply and LNG offtake.

Due to the accelerated nature of their capital contributions,

Stonepeak's total investment of $5.7 billion will be less than their nominal 40% ownership stake in InfraCo after adjusting for the time value of money.

HoldCo will cover the additional capital required if there are any cost overruns. This arrangement offers Stonepeak cost certainty while allowing HoldCo to capture potential capital expenditure savings.

The projected forward cost for the foundation phase of the Louisiana LNG project, starting from December 2024, is estimated at $900–$960 per tonne.

The transaction is expected to close in the second quarter of 2025, pending customary conditions precedent. Post-completion, Stonepeak is expected to make a payment of approximately $2 billion to cover its share of capital expenditures incurred from the effective date to closing.

James Wyper, Senior Managing Director and Head of US Private Equity at Stonepeak, said, "The Project represents a compelling opportunity to invest in a newbuild LNG export facility nearing FID approval with an attractive risk-return profile and best-in-class partners in both Bechtel and Woodside to construct and operate the asset."

Price Action: WDS shares are down 0.82% at $11.54 at the last check Monday.

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