Woodside continues to target final investment decision (FID) readiness for first-quarter 2025. (Source: Shutterstock)
Woodside Energy signed a revised lump sum turnkey engineering, procurement and construction (EPC) contract with Bechtel for the development of the three train, 16.5 million tonnes per annum foundation development of Louisiana LNG.
Australia’s Woodside purchased the Louisiana LNG development from Tellurian Inc. in a $900 million deal in October.
Bechtel, which had worked with Tellurian on the project, has continued EPC at the site since the acquisition. The firm will continue work under a limited notice to proceed (LNTP) executed under the revised EPC contract. The LNTP allows continued site construction and commitment to certain key materials and services required for the foundation project.
Woodside CEO Meg O’Neill said the EPC contract and continuation of engineering and construction activities represent an important step in the project’s development.
“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,” she said. “Louisiana LNG is an advantaged project that is fully permitted and has Bechtel as the EPC contractor. The competitive pricing and schedule certainty we have now secured compounds this advantage in the current uncertain market environment for competing projects.”
Woodside continues to target final investment decision (FID) readiness for first-quarter 2025.
Total Louisiana LNG expenditures from December to end of first-quarter 2025 is forecast to be up to $1.3 billion, which is included in the overall estimated cost for the foundation development.
The estimated forward cost for the foundation development is $900/tonne to $960/tonne, unchanged from the range at the time of acquisition.
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