Stonepeak is acquiring a 40% stake in a US liquefied natural gas (LNG) production and export terminal project owned by Woodside Energy, as part of a deal in which the real assets investor will contribute $5.7bn (€5.2bn) towards the expected capital expenditure for the project’s initial development phase in Louisiana.
Energy firm Woodside has said the sale of part of the Louisiana LNG Infrastructure project reduces Woodside’s capital expenditure requirements and is a step towards achieving readiness for a final investment decision (FID).
Louisiana LNG Infrastructure is an LNG production and export terminal in Calcasieu Parish. Construction is currently under way, and the front-end engineering design has been completed.
Woodside will continue to operate the project following completion of the transaction.
James Wyper, senior MD and head of US private equity at Stonepeak, said: “With the need to bring significant additional capacity online over the coming years, we have strong conviction in the critical role Louisiana LNG will play in the US LNG export market.
“The project represents a compelling opportunity to invest in a new-build LNG export facility nearing FID approval with an attractive risk-return profile and best-in-class partners in both Bechtel and Woodside to construct and operate the asset.”
Meg O’Neill, Woodside CEO, said: “We are very pleased to have Stonepeak join us in Louisiana LNG, given their demonstrated track record investing in US gas and LNG infrastructure across LNG facilities, LNG carriers, and floating storage and regasification units. This transaction further confirms Louisiana LNG’s position as a globally attractive investment set to deliver long-term value to our shareholders.
“It is the result of a highly competitive process that attracted leading global counterparties and significantly reduces Woodside’s capital expenditure for this world-class project.”
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