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Woodside to bring in several partners to Louisiana LNG project by March, CEO says
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Woodside to bring in several partners to Louisiana LNG project by March, CEO says
Nov 28, 2024 5:50 AM

LONDON, Nov 28 - Woodside Energy ( WDS ) expects to

bring several partners into its Louisiana liquefied natural gas

development by the time the company gives the financial go-ahead

to the U.S. project in the first quarter of 2025, its CEO told

Reuters.

Australia-listed Woodside is seeking to sell a 50% stake in

the Louisiana LNG project, which it fully owns following

the $1.2 billion acquisition of developer Tellurian Inc in

October. The U.S. Gulf Coast facility could convert U.S. shale

gas into up to 27.7 million tons per annum of LNG.

Woodside has held talks with U.S. natural gas producers,

traditional LNG buyers who take an equity stake and LNG supplies

from the project as well as infrastructure-focused investors

seeking steady revenue over a long time, CEO Meg O'Neill told

Reuters.

Announcements on new partners in the projects would be

"concurrent with the FID (final investment decision) at the

latest," she said.

"The goal is to put together a dream team where everybody in

the partnership brings something of value. It might be an

understanding of the onshore gas market, it might be

infrastructure capital and LNG offtake and marketing expertise,"

she said.

O'Neill would not name any companies they have engaged with.

Reuters reported last month that Woodside was in talks with

Tokyo Gas ( TKGSF ) on a stake in the project, citing people familiar with

the matter.

O'Neill said that she was "comfortable" Woodside would be

able to finance its share of the development costs from its own

balance sheet.

Woodside will lock in natural gas supplies after final

investment decision on the project, which is expected to start

production in 2028, O'Neill said.

The project is estimated to cost around $900 to $960 per ton

of LNG after re-negotiating the development contract with

service company Bechtel, O'Neill added.

"There are some inflationary pressures, both in the supply

chain and the labor market," she said.

(Rerporting by Ron Bousso and Marwa Rashad; editing by David

Evans)

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