Australia’s leading gas producer, Woodside Energy, announced on Wednesday that it was evaluating the effects of U.S. tariffs and additional trade actions on its Louisiana liquefied natural gas facility project as it moves closer to giving final approval. Woodside purchased the project, previously named Driftwood, from Tellurian for $1.2 billion last year to establish itself as a “global LNG leader.” The initial phase of the four development stages is projected to require $16 billion, per a Reuters report.
In a quarterly report, CEO Meg O’Neill stated that the firm is evaluating the possible effects of recent tariff declarations and prospective additional trade actions on Louisiana LNG following U.S. President Donald Trump's implementation of universal tariffs on almost all trade partners this month.
O’Neill stated that the facility was in a foreign-trade zone, permitting it to postpone tariff payments until every LNG train finishes. Nevertheless, around 50 per cent of the tools and supplies needed for project development must be imported. "Approximately 25 per cent of Louisiana LNG's projected capital spending comprises equipment and materials, with about half anticipated to be obtained from the U.S.," she mentioned. "Should energy prices face additional strain due to tariff-induced growth pressures, it may complicate matters for Woodside in the future," stated Tim Waterer, chief market analyst at KCM Trade Global.
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To enhance the project's financial outlook, Woodside revealed earlier this month that it sold a 40 per cent stake in Louisiana LNG’s export terminal to U.S. investment company Stonepeak, financing 75 per cent of the project's expenditures in 2025 and 2026. Last week, it also finalised its initial offtake agreement with Germany's Uniper for 1 million tonnes annually. O'Neill stated, "We are happy with the high level of interest from potential strategic partners and are progressing talks aimed at additional equity sell-down. We are advancing swiftly toward a final investment decision on Louisiana LNG, establishing Woodside as a global leader in LNG.”
The update arrives as the firm announced revenue of $3.32 billion for the quarter ending March 31, driven by robust gas hub-related prices and the launch of its Sangomar project in Senegal. The outcome surpassed a Visible Alpha consensus estimate of $2.79 billion and rose 13 per cent from the $2.95 billion reported last year. On a quarterly basis, the company reported a 5 per cent decrease in revenue due to a drop in oil-related prices, the effects of cyclones on its North West Shelf project, and unexpected train outages at its Pluto LNG project. The company's shares increased by up to 3.9 per cent to A$20.470 at 0036 GMT, while the wider energy sub-index advanced by 3.1 per cent, reflecting a rise in global oil prices. Woodside maintained its forecast for production and capital spending for 2025.
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