Woodside to Receive Up to 640 Bcf Gas from bp Starting 2029 for Louisiana LNG
Woodside Energy has inked a pivotal long-term agreement with bp to supply up to 640 billion cubic feet of natural gas for its Louisiana LNG project starting in 2029, marking a significant step in the project's development and environmental commitments.
- Woodside signs long-term gas supply agreement with bp for Louisiana LNG
- Agreement covers up to 640 billion cubic feet of natural gas starting 2029
- Partnership leverages bp’s MiQ-certified low methane intensity gas
- Supports Woodside’s environmental goals under UN OGMP 2.0 initiative
- Louisiana LNG project poised for significant cash generation and shareholder value
Strategic Gas Supply Agreement
Woodside Energy Group has formalised a long-term gas supply agreement with bp, securing a critical feedgas source for its ambitious Louisiana LNG project. The deal, announced on 30 April 2025, commits bp to supply up to 640 billion cubic feet of natural gas starting in 2029. This agreement represents the first tranche of a diversified portfolio of feedgas that will underpin the project’s operations.
The Louisiana LNG project, a major development in Woodside’s global portfolio, is designed to leverage extensive interconnectivity to multiple producing basins and pipelines, enabling flexible and reliable gas sourcing. The agreement with bp, a seasoned player in US onshore gas production through its bpx energy subsidiary, is a strategic move to ensure steady supply from some of the most prolific basins, including the Haynesville basin.
Environmental and Operational Synergies
Woodside’s CEO, Meg O’Neill, highlighted the significance of the partnership not only from a commercial perspective but also in terms of environmental stewardship. By collaborating with bp, which has pioneered MiQ certification for its gas production, Woodside gains access to verifiably low methane intensity molecules. This aligns with Woodside’s commitments as a member of the UN Environment Programme’s Oil and Gas Methane Partnership (OGMP) 2.0 initiative, reinforcing its strategy to reduce greenhouse gas emissions and enhance sustainability credentials.
bp’s bpx energy business, headquartered in Denver, embodies a technologically advanced approach to safely increase production while lowering emissions. The MiQ certification, a globally recognised standard for methane emissions measurement and reduction, adds a layer of credibility and transparency to the gas supply, which is increasingly important to investors and regulators alike.
Project Outlook and Market Implications
The Louisiana LNG project is positioned as a compelling investment opportunity expected to generate significant cash flow and long-term shareholder value. The gas supply agreement is a foundational step that de-risks the project’s feedgas sourcing strategy, a critical factor for LNG developments given the scale and duration of commitments required.
While financial terms of the agreement remain undisclosed, the scale of the commitment underscores Woodside’s confidence in the project’s viability and bp’s capability as a reliable supplier. The project’s expected start of gas delivery in 2029 sets a clear timeline for stakeholders to monitor progress and assess the evolving energy market dynamics, particularly in the context of global energy transition pressures.
Woodside’s approach reflects a broader industry trend where LNG producers are increasingly integrating environmental certifications and partnerships to meet stringent ESG criteria, which are becoming central to capital allocation decisions and market access.
Bottom Line?
Woodside’s bp-backed gas supply deal not only secures feedstock but also signals a greener LNG future.
Questions in the middle?
- What are the detailed financial terms and pricing mechanisms of the gas supply agreement?
- How will Woodside diversify its feedgas portfolio beyond this initial tranche to fully support Louisiana LNG?
- What are the specific milestones and risks ahead for the Louisiana LNG project’s 2029 start date?
