Stonepeak Invests $5.7B for 40% Stake in Woodside’s Louisiana LNG Project

U.S. investment firm Stonepeak will acquire a 40% stake in Woodside Energy’s (OTC: WOPEY) Louisiana LNG project, committing $5.7 billion in capital expenditures. The Australian energy company confirmed the partnership on Monday, marking a major boost for the yet-to-be-finalized project.

Stonepeak, which manages around $72 billion in assets, will fund the project’s foundational development with an accelerated contribution set for 2025 and 2026. Woodside will retain a 60% stake following the deal but is pursuing additional partnerships, aiming to sell down up to 50% equity in the integrated LNG venture.

The Louisiana LNG facility is expected to be constructed in four phases. Phase I targets an annual output of 11 million metric tons of liquefied natural gas (LNG), with full project completion projected to deliver 27.6 MTPA. The final investment decision (FID) is still pending.

The deal arrives amid growing global interest in U.S. LNG as countries diversify energy sources and seek to avoid potential tariffs under former President Donald Trump, who has consistently advocated for higher U.S. energy exports. Trump’s early executive orders aimed to stimulate domestic oil and gas production and expand energy trade partnerships.

Reuters had previously reported Woodside’s ongoing discussions with other potential investors for the Louisiana project. CEO Meg O’Neill emphasized continued talks to secure more partners.

Despite the strategic investment, Woodside shares dropped 7.5% to A$18.89 at 0104 GMT, reflecting broader energy sector weakness, with the energy sub-index falling 8.6%.

The Louisiana LNG project is set to become a key player in the global LNG market, driven by strong capital support and rising demand for U.S. energy exports.