Woodside Energy Group has signed a revised engineering, procurement, and construction (EPC) agreement with Bechtel for the Louisiana LNG project in the US.
The updated contract adopts a lump-sum turnkey model for the facility’s three-train foundation, which is designed to produce 16.5 million tonnes of liquefied natural gas (LNG) annually (Mtpa).
The agreement ensures Bechtel continues site work under a limited notice to proceed (LNTP). This notice includes ongoing construction activities and commitments to secure essential materials and services for the initial phase of development.
Bechtel has been involved since the project’s acquisition.
Woodside revealed that it is targeting final investment decision (FID) readiness by the first quarter of 2025.
Woodside chief executive Meg O’Neill said: “Louisiana LNG is positioned to provide LNG into the growing global market and generate value for shareholders in accordance with our capital allocation framework.
“We continue to move at pace. 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.”
Projected spending on Louisiana LNG from December 2024 to the end of Q1 2025 is estimated at up to $1.3bn. This expenditure is included within the broader cost estimate for the foundation phase, which remains at $900 to $960 per tonne.
According to Woodside, these figures cover EPC costs, contractor completion incentives, and operational expenses, excluding pipeline costs.
Located in Calcasieu Parish, the facility has a permitted capacity of 27.6Mtpa. Woodside expects the project to strengthen its presence in the US LNG market and support global supply chains across the Atlantic and Pacific basins.
The Louisiana LNG project, previously known as Driftwood LNG, became part of Woodside’s portfolio following the acquisition of Tellurian and the LNG development for approximately $900m in cash.
Announced in July 2024, the deal saw Woodside acquire all issued and outstanding Tellurian common stock for $1 per share, reflecting an enterprise value of around $1.2bn.
The project, renamed Woodside Louisiana LNG, includes plans for five LNG trains and an associated pipeline network, to be constructed in four phases. The first phase is expected to have a capacity of 11Mtpa, followed by a second phase with a capacity of 5.5Mtpa.
