Stonepeak Companions LP has signed an settlement to turn out to be a 40 % accomplice in Woodside Power Group Ltd.’s Louisiana LNG undertaking, committing a cumulative funding of $5.7 billion.
“The transaction considerably reduces Woodside’s capital expenditure profile and is a cloth step in the direction of readiness for a ultimate funding determination”, Woodside mentioned in a web-based assertion. The Australian oil and gasoline exploration and manufacturing firm beforehand mentioned it expects to make a ultimate funding determination this quarter.
The under-construction undertaking in Calcasieu Parish, Louisiana, on america Gulf Coast has a permitted liquefaction capability of 27.6 million metric tons each year (MMtpa). Woodside took over the undertaking, then known as Driftwood LNG, when it acquired Tellurian Inc. for about $1.2 billion final 12 months.
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“Below the transaction, Stonepeak will present $5.7 billion in the direction of the anticipated capital expenditure for the inspiration improvement of Louisiana LNG on an accelerated foundation, contributing 75 % of undertaking capital expenditure in each 2025 and 2026”, Woodside mentioned. The muse improvement targets to appreciate 16.5 MMtpa of the permitted capability.
“This enhances the undertaking economics and Woodside’s money stream profile forward of revenues from Woodside’s Scarborough Power Mission in Australia, strengthening the capability for shareholder returns”, Woodside added. “The rest of Stonepeak’s dedicated capital might be funded in subsequent years”.
Woodside saved the estimated ahead value for the inspiration improvement at $900-960 per metric ton. On December 5, 2024, Woodside mentioned it had signed a revised turnkey engineering, procurement and development contract with Bechtel Corp. and that the brand new contract represents aggressive pricing.
The transaction with Stonpeak is anticipated to be accomplished within the second quarter, topic to regulatory and different customary approvals.
“We’re very happy to have Stonepeak be a part of us in Louisiana LNG, given their demonstrated monitor file investing in US gasoline and LNG infrastructure throughout LNG services, LNG carriers, and floating storage and regasification models”, Woodside chief government Meg O’Neill mentioned.
“We’re happy with the sturdy stage of curiosity from counterparties and clients in Louisiana LNG”, O’Neill added. “We are going to proceed advancing discussions with extra potential companions concentrating on an fairness sell-down of round 50 % within the built-in undertaking. As we’ve got demonstrated with our Scarborough and Pluto Prepare 2 Mission in Australia, the addition of an infrastructure accomplice unlocks worth and paves the way in which for different strategic fairness companions”.
James Wyper, Stonepeak senior managing director and head of personal fairness within the U.S., mentioned, “With the necessity to carry vital extra capability on-line over the approaching years, we’ve got sturdy conviction within the essential position Louisiana LNG will play within the US LNG export market”.
To contact the writer, e-mail jov.onsat@rigzone.com
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