Woodside Energy has taken a significant step forward in the development of its Louisiana LNG project by signing a revised lump sum turnkey engineering, procurement, and construction (EPC) contract with Bechtel.
The agreement covers the foundation development of three LNG trains with a combined capacity of 16.5 million tonnes per annum.
Bechtel, which has been working on the site since Woodside’s acquisition of the project, will continue its activities under a limited notice to proceed (LNTP) as part of the revised EPC contract.
This arrangement ensures ongoing site construction and secures essential materials and services for the foundation project.
Woodside CEO Meg O’Neill highlighted the importance of this development, stating: “Louisiana LNG is positioned to provide LNG into the growing global market and generate value for shareholders in accordance with our capital allocation framework.”
O’Neill also pointed out the rapid progress made since the acquisition, including securing competitive EPC pricing for all three trains and generating strong interest from potential project partners.
The Louisiana LNG project is described as an advantaged development, being fully permitted and having Bechtel as the EPC contractor.
O’Neill noted that the competitive pricing and schedule certainty recently secured further enhance the project’s advantage in the current uncertain market environment.
Woodside is targeting final investment decision (FID) readiness from the first quarter of 2025.
The company forecasts total expenditure for Louisiana LNG from December to the end of Q1 2025 to be up to US$1.3 billion, which is included in the overall estimated cost for the foundation development.
The estimated forward cost for the foundation development remains unchanged from the time of acquisition at US$900-960 per tonne.
This development represents a crucial milestone in Woodside’s strategy to expand its LNG portfolio and capitalise on the growing global demand for liquefied natural gas.
