Woodside has formalised a revised lump-sum turnkey engineering, procurement, and construction contract with Bechtel for the foundational development of its Louisiana LNG project. The contract covers the construction of three trains, delivering a combined capacity of 16.5 million tonnes per annum.
Bechtel, which has been active on-site since the project’s acquisition, will continue its work under a Limited Notice to Proceed agreement executed as part of the revised contract. The LNTP allows for ongoing construction activities and the procurement of key materials and services essential for the foundation phase of the project.
Woodside CEO Meg O’Neill highlighted the significance of the updated EPC contract and the continued progress under the LNTP as pivotal steps in advancing the Louisiana LNG project.
“Louisiana LNG is strategically positioned to supply LNG to the growing global market while delivering value to shareholders under our capital allocation framework,” O’Neill stated.
She further noted, “We are maintaining strong momentum. In a relatively short period, we have completed the acquisition, secured competitive revised EPC pricing encompassing all three trains, and opened the data room, which has already attracted strong interest from potential project partners.
“Louisiana LNG is a highly advantaged project with full permitting in place and Bechtel as the EPC contractor. The competitive pricing and schedule certainty now secured reinforce the project’s appeal in today’s uncertain market conditions for competing developments.”
Project Timeline and Cost Estimates
Woodside is aiming for final investment decision readiness by the first quarter of 2025. Total expenditure on the Louisiana LNG project between December 2023 and the end of Q1 2025 is expected to reach up to $1.3 billion, a figure included in the overall estimated cost for the foundation phase of the development.
The projected forward cost for the foundation development remains at $900–960 per tonne, consistent with the estimates provided at the time of the project’s acquisition.
Strategic Advantage
With full permitting secured, competitive pricing, and Bechtel’s expertise driving construction, Louisiana LNG is positioned as a leading project within the global LNG market. Woodside’s efforts to ensure cost efficiency and project viability underscore its commitment to advancing a world-class LNG facility capable of meeting growing energy demand.
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