Woodside finds a major customer for Louisiana LNG

QatarEnergy takes up to 3 Mtpa from Louisiana LNG

Woodside Energy Group Ltd (ASX:WDS) has secured QatarEnergy as a long-term customer for its US LNG expansion, signing an agreement covering up to 3 million tonnes a year for 20 years from the Louisiana LNG Project.

The supply will begin when Louisiana LNG Train 2 starts up, with volumes increasing to 3 Mtpa from the start-up of Train 3. Woodside will sell the LNG on a free-on-board basis from its share of HoldCo volumes.

Commercial support arrives before the 2029 target

Louisiana LNG is under construction near Lake Charles, Louisiana. Its foundation project comprises three trains with combined capacity of 16.5 Mtpa and is targeting first LNG in 2029.

The QatarEnergy contract follows Woodside’s previously announced agreement with Uniper. The company said the two contracts provide “sustained revenue certainty for a material portion” of Louisiana LNG’s production as construction moves towards first LNG. The project had also been reported as progressing on schedule and budget in the July Louisiana LNG update.

Value remains difficult to quantify

For Woodside, the announcement strengthens the customer base for a project designed to add geographically diverse LNG supply to its portfolio. Chief executive Liz Westcott called the agreement a “strong vote of confidence” in Louisiana LNG, but the filing does not disclose pricing, total contract value, QatarEnergy’s minimum purchase obligation or Woodside’s ownership percentage in the relevant HoldCo volumes.

That leaves the commercial impact positive in direction but imprecise in dollars. The more immediate test is execution: Louisiana LNG must reach Train 2 and Train 3 start-up milestones before the contracted volumes can begin flowing, with first LNG still described as a 2029 target rather than a completed event.