Australian independent Woodside Energy has signed an engineering, procurement and construction (EPC) contract with US engineering firm Bechtel for its Louisiana LNG terminal located in the US Gulf region.
Bechtel has maintained operations at the partially constructed site since Woodside took over the project in October, after acquiring US LNG developer Tellurian, with works to continue subject to a limited notice to proceed under contract revisions, Woodside said.
The Louisiana LNG foundation development comprises phases 1 and 2, which total 16.5mn t/yr capacity across three trains. Originally named Driftwood, Louisiana has permitting for a total five-train, 27.6mn t/yr capacity, with a final investment decision (FID) for phase 1 planned for January-March 2025.
"In a short period of time, we have completed the acquisition, secured competitive revised EPC pricing that covers all three trains and opened the data room with strong interest from potential project partners," chief executive Meg O'Neill said on 5 December.
Analysts have identified Tokyo Gas as a potential project partner, with RBC Capital Markets' Gordon Ramsay describing Louisiana LNG as a "good fit" with the Japanese utility's strategy of diversifying long-term offtake and locking in US gas supply, most recently through its purchase of independent Haynesville shale producer Rockcliff Energy for $2.7bn last year.
First LNG at Louisiana is expected ahead of the project's US Federal Energy Regulatory Commission approval, expiring on 30 June 2029, O'Neill told an investor call in July, saying such a timeframe was consistent with a first quarter of 2025 FID.
Perth-based Woodside heralded its fully permitted status when it announced it would buy Tellurian in July. But the election of Donald Trump as US president means a pause on issuing LNG export permits to non-free trade agreement nations is expected to be lifted in 2025.
Under O'Neill, Woodside has moved to increase its exposure to Atlantic basin LNG, inking a sales and purchase deal with the 9.5mn t/yr Commonwealth LNG in addition to an offtake deal with the 17.4mn t/yr Corpus Christi LNG in 2014. This adds to its existing 10mn t/yr equity production on Australia's west coast.
Louisiana LNG expenditure from December to the end of March will be $1.3bn, Woodside said, estimating forward costs for the initial stage will be $900-960/t, unchanged from the figure at acquisition.
