Woodside and Williams Forge $378M Alliance to Power Louisiana LNG
Woodside Energy Group has sealed a strategic partnership with US infrastructure giant Williams, selling stakes in Louisiana LNG and Driftwood Pipeline for $378 million, accelerating the project’s path to first LNG in 2029.
- Woodside sells 10% of Louisiana LNG LLC and 80% of Driftwood Pipeline LLC to Williams
- Williams invests $250 million upfront and commits to $1.9 billion capital expenditure
- Williams assumes 10% LNG offtake obligations and operational control of Line 200 pipeline
- Woodside’s Louisiana LNG project capex reduced to $9.9 billion from $11.8 billion
- Partnership leverages Williams’ US gas infrastructure and Sequent Energy platform
Strategic Partnership Strengthens Louisiana LNG Project
Woodside Energy Group has taken a significant step forward in its US liquefied natural gas ambitions by partnering with Williams, a leading US natural gas infrastructure operator. The deal, announced on 23 October 2025, involves Woodside selling a 10% stake in Louisiana LNG LLC and an 80% interest in Driftwood Pipeline LLC to Williams for an upfront consideration of US$250 million, with total proceeds amounting to $378 million including capital reimbursements.
This alliance is more than a capital transaction; it strategically aligns Woodside’s LNG development expertise with Williams’ extensive pipeline operations and gas sourcing capabilities. Williams, which operates over 33,000 miles of pipeline across 24 US states and manages the Sequent Energy Management platform, will bring operational leadership to the Line 200 pipeline and contribute significantly to the project’s capital expenditure, estimated at $1.9 billion.
Operational and Financial Implications
Williams’ involvement includes assuming LNG offtake obligations for 10% of Louisiana LNG’s production, equating to approximately 1.6 million tonnes per annum. The partnership also leverages Sequent’s gas marketing and optimisation expertise to ensure reliable feedgas supply, a critical factor for the project’s success.
Woodside’s total capital expenditure for the Louisiana LNG project has been revised down to $9.9 billion from the initial $11.8 billion at the final investment decision stage. This reduction reflects the impact of the transaction and the shared capital commitments with Williams. Financially, Woodside will continue to consolidate HoldCo in its accounts, while PipelineCo will be deconsolidated and recorded as an equity investment going forward.
Looking Ahead to First LNG in 2029
The Louisiana LNG project, located near Lake Charles, Louisiana, is fully permitted with a total capacity of 27.6 million tonnes per annum across five trains. The foundation project includes three trains with a combined capacity of 16.5 Mtpa, targeting first LNG by 2029. The project benefits from established partnerships with engineering and technology providers such as Bechtel, Baker Hughes, and Chart.
Woodside CEO Meg O’Neill highlighted the complementary nature of the partnership, emphasizing the combined capabilities to meet long-term global energy demand. Williams’ CEO Chad Zamarin echoed this sentiment, framing the deal as a key milestone in Williams’ strategy to integrate upstream, midstream, marketing, and LNG capabilities.
As the project advances, the collaboration between Woodside and Williams is poised to enhance operational efficiencies, optimise gas sourcing, and strengthen the US LNG supply chain at a time of growing global demand for cleaner energy solutions.
Bottom Line?
This partnership not only accelerates Louisiana LNG’s timeline but also reshapes Woodside’s US LNG footprint with a powerful new ally.
Questions in the middle?
- How will Williams’ operational control of the pipeline impact project execution and costs?
- What are the long-term implications for Woodside’s LNG marketing strategy with Williams’ gas sourcing platform?
- Could this partnership signal further US infrastructure investments by Woodside or Williams?
