Australian oil and gas giant Woodside has sealed a US$378 million partnership with US gas infrastructure firm Williams to develop investment in their Louisiana gas assets.
Woodside has sold a 10 per cent interest in Louisiana LNG LLC and an 80 per cent interest in the Driftwood Pipeline LLC (PipelineCo) to Williams for US$250 million as part of the deal.
The partnership is part of Woodside’s strategy for Louisiana LNG, securing capital and bringing on a partner in US natural gas infrastructure that has an existing gas sourcing platform, Sequent Energy Management (Sequent).
In a statement, the company said Williams currently operates more than 33,000 miles of pipeline across 24 states in the US and its Sequent platform has a marketing and optimisation footprint of more than 7 Bcf/d.
Williams will also construct and operate the Line 200 pipeline to the Louisiana LNG Terminal.
Williams will contribute its share of the capital expenditure for the LNG facility and pipeline, of approximately $1.9 billion and have LNG offtake obligations for 10 per cent of produced volumes.
Woodside CEO Meg O’Neill said Williams had the experience to add value and ‘deliver operational benefits’ to the Louisiana LNG Project.
“This is Williams’ first investment in LNG and its participation in Louisiana LNG is a testament to the quality of the project.
“The bringing together of Woodside’s proven track record in developing and operating LNG facilities and global marketing, and Williams’ expertise in pipelines and gas sourcing, creates an energy partnership that has the combined capability to realise opportunities for long-term global energy demand.
“With strong LNG contracting momentum from Louisiana LNG and our portfolio, our existing infrastructure partner New York-based Stonepeak, and our key contracting partners including Bechtel, Baker Hughes and Chart, we are on track to deliver first LNG in 2029 and create long-term value for our shareholders.”
President and CEO of Williams Chad Zamarin also released comments on the partnership.
“This transaction marks an important step forward in Williams’ wellhead to water strategy – integrating upstream, midstream, marketing and LNG capabilities to deliver the cleanest, most reliable energy to global markets. We look forward to partnering with Woodside, and together, reinforcing and strengthening our collective roles as trusted providers of sustainable energy solutions that meet growing global demand.”