U.S.-based Williams will spend $1.9 billion on the development of LNG facilities and a pipeline for Australian gas producer Woodside Energy’s $17.5 billion liquefied natural gas project in Louisiana, the companies said.
The pipeline operator will take up a 10% stake in the Louisiana LNG Infrastructure LLC and will also simultaneously buy an 80% interest and operatorship of the Driftwood pipeline for $250 million, Williams said on Wednesday.
Woodside is expecting to receive total proceeds of $378 million under the agreement, Australia’s top energy firm said in a separate announcement on Thursday.
Woodside’s total capital expenditure for the project is now expected to be $9.9 billion, reduced from a previous estimate of $11.8 billion.
Furthermore, Williams’ total LNG entitlement from the Louisiana LNG project will amount to 1.6 million tonnes per annum (Mtpa), comprising about 1.5 Mtpa under its own supply agreement.
The company will also benefit proportionately from 10% of the project’s 1.0 Mtpa offtake deal previously signed with Uniper.
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Shreya Biswas and Maju Samuel)