U.S.-based investment firm Stonepeak will acquire a 40% stake in Woodside Energy’s Louisiana LNG project and contribute $5.7 billion in capital expenditures, the Australian energy company said on Monday.
Under the partnership, Stonepeak, which manages about $72 billion in assets, will contribute $5.7 billion in capital expenditure for the project’s foundation development, with the contribution to be accelerated in both 2025 and 2026.
The deal comes at a time when U.S. President Donald Trump has been pushing trade partners to buy more U.S. energy. Trump issued several executive orders in his first weeks in office, aimed at boosting domestic oil and gas output.
Global players have been vying for U.S. LNG projects to diversify their supply base and potentially fend off U.S. tariffs under the Trump administration, by increasing energy imports and narrowing trade deficits that irk the U.S. president.
Reuters previously reported that Woodside is in talks with several potential buyers for a stake sale in its Louisiana LNG project.
Upon completion of the deal, the company will retain a 60% stake in the project.
“We will continue advancing discussions with additional potential partners targeting an equity sell-down of around 50% in the integrated project,” Woodside CEO Meg O’Neill said on Monday.
The Louisiana LNG project, which is awaiting a final investment decision, is likely to be built in four phases, with Phase I expected to produce 11 million metric tons per annum (MTPA) of the superchilled gas.
When completed, the project is expected to produce 27.6 MTPA.
Shares of Woodside were down 7.5% at A$18.89, as at 0104 GMT, in line with an 8.6% slump in the broader energy sub-index.
(Reporting by John Biju in Bengaluru; Editing by Sherry Jacob-Phillips)