SYDNEY, Oct. 23, 2025 – Woodside Energy has announced that U.S.-based Williams will join as an investor and pipeline operator for the Louisiana liquefied natural gas (LNG) project, a move aimed at leveraging Williams’ extensive pipeline infrastructure experience and reducing construction costs as the $17.5 billion project ramps up.
Under the agreement, Williams will receive a 10% stake in Louisiana LNG’s holding company and 80% ownership of the Driftwood pipeline, which will deliver feed gas to the facility. The company will pay $378 million to Woodside and contribute $1.9 billion toward construction costs.
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“We do want to bring other investors into the project,” said Woodside CEO Meg O’Neill. “We're not going to set a timeline on it. We'll continue to be patient, but the window is narrowing.”
O’Neill emphasized that while Woodside has substantial experience developing LNG projects globally, partnering with an established U.S. onshore pipeline operator like Williams was essential to optimize project execution.
“We’re off to the races with the project,” O’Neill said. “Our construction workforce has ramped up ahead of first production, which is expected in 2029.”
The Louisiana LNG venture is a core part of Woodside’s North American expansion strategy, capitalizing on growing global LNG demand and favorable U.S. energy policy. Prior to the Williams deal, Woodside sold 40% of the project’s infrastructure company to U.S. investor Stonepeak for $5.7 billion. O’Neill indicated that Woodside is looking to sell an additional 10%–20% in the holding company to reduce its total stake to 50%.
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MST Marquee analyst Saul Kavonic called Williams a “very strong partner” that would help ease balance sheet pressures and raise the project’s profile within the U.S. market.
“From an investor perspective, the sell-down is viewed positively,” he added.
Woodside shares gained 4.1% to A$24.11 following the announcement, reflecting investor confidence in the project’s strategic partnerships and growth potential.
Once operational, Louisiana LNG is expected to produce 16.5 million metric tons annually. Woodside is targeting European markets, which are reducing LNG imports from Russia, and already has supply agreements with Germany’s Uniper and a heads of agreement with Turkey’s BOTAS.
“There's very strong interest in LNG from our project from those customers in Europe,” O’Neill said. “They're absolutely going to need LNG from other sources, and the U.S. is going to be one of those key sources.”
The project illustrates Woodside’s strategy of combining capital partnerships with operational expertise to reduce financial risks, accelerate construction, and meet surging international LNG demand.
Originally reported by Christine Chen and Rishav Chatterjee in Reuters.
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