CALCASIEU PARISH, La. — The $17.5 billion Louisiana LNG project, led by Australia’s Woodside Energy, has reached a significant early milestone with 22% of construction complete, signaling rapid progress on one of the most ambitious energy developments in the U.S. Gulf Coast.
Formerly known as Driftwood LNG, the facility is being built in partnership with Louisiana LNG Infrastructure (InfraCo) — a joint venture between Stonepeak, holding a 40% stake, and Louisiana LNG (HoldCo), operated by Woodside. The project represents the largest foreign direct investment in Louisiana’s history.
At a groundbreaking ceremony, Woodside CEO Meg O’Neill underscored the project’s scale and impact:
“The project is a game-changer for Woodside, marking our biggest-ever investment in the US and representing the largest foreign direct investment in Louisiana’s history. It positions Woodside as a global LNG powerhouse and will deliver enduring returns to shareholders.
“Louisiana LNG will be a significant contributor to US LNG exports, supporting the nation’s role as a leading energy supplier to the world. It is expected to support tens of thousands of high-quality jobs in the US, strengthen global energy security and generate billions of dollars in local and national revenues, delivering long-term benefits to the communities where we operate.”
The project broke ground after its final investment decision (FID) in April 2025. The construction workforce has since grown to nearly 900, with Bechtel serving as the lead contractor. Work on the first of three LNG trains is well underway, with full initial capacity expected to reach 16.5 million tonnes per annum (mtpa) once the facility enters production in 2029.
Sarah Bairstow, President of Louisiana LNG, emphasized the balance of safety, speed, and local benefit:
“Woodside is focused on the safe execution and delivery of Louisiana LNG. Construction activity under our contractor Bechtel is proceeding at pace. The facility is being constructed piece-by-piece in the US, meaning approximately 85% of the construction spend is local. At the same time, we continue to actively market US LNG in Europe and Asia, targeting delivery from 2029 onwards.”
With full permits in place, the site could eventually expand to 27.6 mtpa through two additional trains. Woodside has already reduced its stake by 40% in favor of Stonepeak and is considering additional partnerships with global investors, including Aramco, which has expressed interest.
The company has also secured key long-term offtake agreements, including a deal with BP to supply feed gas and a 15-year, 1 mtpa contract with Petronas starting in 2028.
U.S. officials highlighted the project as part of a broader strategy to reassert America’s global energy leadership.
Chris Wright, U.S. Secretary for Energy, said:
“Expanding US LNG exports expands American prosperity, supports jobs in the Gulf Coast region and strengthens the energy security of our allies and trading partners around the world. Projects like this send a signal to the rest of the world that the US is once again open for business and prepared to lead the world with President Trump’s American energy dominance agenda.”
Doug Burgum, U.S. Secretary of the Interior, added:
“Louisiana LNG is another win for President Trump’s American Energy Dominance Agenda. Woodside Energy is breaking ground on a new LNG export terminal in the Gulf of America, creating more jobs for American workers and helping us sell energy to our friends and allies.”
With momentum building, Woodside views Louisiana LNG as not just a U.S. megaproject but as a cornerstone in reshaping global LNG flows. By 2029, the facility is expected to anchor America’s expanding role as the world’s top LNG exporter, delivering both economic and geopolitical dividends.
Originally reported by Melisa Cavcic in Offshore Energy.
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