Stonepeak has agreed to acquire a 40% interest in Louisiana LNG Infrastructure, the holding company for the Louisiana LNG project in the US, from Woodside Energy Group.
The project is a liquefied natural gas (LNG) production and export terminal located in Calcasieu Parish, Louisiana. It has a permitted capacity of 27.6 million tonnes of LNG per annum (Mtpa).
The transaction involves Stonepeak contributing $5.7bn towards the anticipated capital expenditure for the foundational development of the Louisiana LNG project. This contribution will cover 75% of the total expected expenditure for the years 2025 and 2026.
The financial injection allows Woodside to significantly reduce its capital expenditure burden while enhancing its cash flow position ahead of revenue generation from the Scarborough Energy Project in Australia.
Woodside CEO Meg O’Neill said: “We are very pleased to have Stonepeak join us in Louisiana LNG, given their demonstrated track record investing in US gas and LNG infrastructure across LNG facilities, LNG carriers, and floating storage and regasification units.
“This transaction further confirms Louisiana LNG’s position as a globally attractive investment set to deliver long-term value to our shareholders. It is the result of a highly competitive process that attracted leading global counterparties and significantly reduces Woodside’s capital expenditure for this world-class project.”
InfraCo will manage the construction of liquefaction infrastructure and shared user facilities. It will be operated under a partnership in which Stonepeak holds a 40% stake, while the remaining 60% is controlled by HoldCo, operated by Woodside.
The project includes an engineering, procurement, and construction (EPC) agreement with Bechtel. A long-term liquefaction tolling arrangement between InfraCo and HoldCo is established, with the latter assuming responsibility for gas supply and LNG offtake.
The estimated cost for the project’s foundation development is positioned at $900-960 per tonne as projected from December 2024. These costs exclude pipeline expenses and contingencies associated with HoldCo.
Completion of this transaction is targeted for Q2 2025. It hinges on conditions including regulatory approvals and a final investment decision (FID) for the development phase of Louisiana LNG.
Stonepeak senior managing director and US private equity head James Wyper said: “With the need to bring significant additional capacity online over the coming years, we have strong conviction in the critical role Louisiana LNG will play in the US LNG export market.
“The Project represents a compelling opportunity to invest in a newbuild LNG export facility nearing FID approval with an attractive risk-return profile and best-in-class partners in both Bechtel and Woodside to construct and operate the asset.”
The Louisiana LNG facility is strategically positioned along the Gulf Coast LNG corridor, providing proximity to natural gas resources and direct access to the US Gulf. Construction activities are in progress, with front-end engineering design already completed.
Mizuho Bank and its affiliate Greenhill & Co. along with Santander US Capital Markets served as financial advisers to Stonepeak.
Legal counsel was provided by Simpson Thacher & Bartlett and Paul, Weiss, Rifkind, Wharton & Garrison.
RBC Capital Markets and Evercore acted as financial advisers to Woodside, with Norton Rose Fulbright providing legal counsel.
