(Reuters) -Australia’s Woodside Energy said on Wednesday it had entered a non-binding agreement with Aramco to explore opportunities, including the Saudi Arabian company’s potential stake acquisition in the Louisiana LNG project. Woodside, Australia’s top gas producer, gave the final go-ahead to build the $17.5 billion liquefied natural gas project in Louisiana last month, confident a […]
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Australia’s Woodside, Saudi Aramco sign deal for potential Louisiana LNG stake buy
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(Reuters) -Australia’s Woodside Energy said on Wednesday it had entered a non-binding agreement with Aramco to explore opportunities, including the Saudi Arabian company’s potential stake acquisition in the Louisiana LNG project.
Woodside, Australia’s top gas producer, gave the final go-ahead to build the $17.5 billion liquefied natural gas project in Louisiana last month, confident a pro-fossil fuel U.S. administration and strong demand in Europe and Asia would give it competitive returns.
The approval came after Woodside agreed to sell a 40% stake in the project to U.S. infrastructure investor Stonepeak, who would contribute $5.7 billion towards the expected capital cost.
The company is seeking to sell a further 20%-30% stake in Louisiana LNG.
Woodside CEO Meg O’Neill said in a statement that the deal with Aramco is another demonstration of the ongoing interest Louisiana LNG is generating among high-quality potential investors.
The LNG project is expected to deliver first gas in 2029.
Both the companies are also exploring opportunities for LNG offtake and potential collaboration in lower-carbon ammonia, Woodside said.
(Reporting by Himanshi Akhand in Bengaluru; Editing by Rashmi Aich)