Woodside Energy has approved a final investment decision to move forward with its three-train, 16.5 million tonne-per-annum (Mtpa) Louisiana LNG project, with first production targeted for 2029, the company announced Monday.

The development is projected to significantly boost Woodside’s position in the global liquefied natural gas (LNG) market. Once operational, Louisiana LNG will contribute to a total output of about 24 Mtpa across Woodside’s global portfolio by the 2030s—representing more than 5% of the world’s LNG supply. The site is fully permitted for up to five trains, allowing expansion to a maximum capacity of 27.6 Mtpa.

“This is a game-changer for Woodside,” said CEO Meg O’Neill in a statement. “Louisiana LNG will elevate us as a global LNG powerhouse and deliver enduring shareholder returns.”

The total capital expenditure for the project is estimated at $17.5 billion, with Woodside’s share at $11.8 billion. Investment firm Stonepeak will contribute $5.7 billion through its stake in Louisiana LNG Infrastructure LLC, front-loading 75% of its capital investment in 2025 and 2026.

Woodside expects the facility to generate approximately $2 billion in annual net operating cash flow in the 2030s. Across its full global LNG portfolio, the company forecasts more than $8 billion in annual operating cash during that decade. The Louisiana LNG project is projected to deliver a return above 13% and pay back within seven years, according to the company.

“This world-class project is a compelling and de-risked investment,” O’Neill said. “It builds on our strengths in project execution, marketing, and operational excellence.”

Despite the expansion, Woodside said its greenhouse gas emissions reduction targets will remain unchanged, and the baseline used to measure reductions will not be adjusted due to the project.

The facility benefits from access to abundant low-cost U.S. gas and long-standing interstate and intrastate supply networks. It also opens new marketing channels across the Pacific and Atlantic Basins, expanding Woodside’s presence beyond its core base in Asia.

The company said it is in active discussions with potential strategic partners for further equity sell-downs to optimize funding and accelerate returns, following a model similar to its Scarborough Energy Project in Australia.

Set to become the largest single foreign direct investment in Louisiana’s history, the project is expected to support about 15,000 U.S. jobs during construction. It also marks the first greenfield U.S. LNG development to reach final investment decision since July 2023.