Woodside, Australia’s energy giant, has completed the acquisition of U.S.-based natural gas company Tellurian, marking a significant expansion of its liquefied natural gas (LNG) portfolio. This deal includes the ownership and operatorship of a proposed 27.6 million tonnes per annum (mtpa) LNG terminal in Calcasieu Parish, Louisiana, previously known as the Driftwood LNG development. Following the acquisition, Woodside has rebranded the project as Woodside Louisiana LNG.

The acquisition, first announced in July 2024, involved an all-cash transaction of approximately $900 million for all issued and outstanding Tellurian common stock. The total implied enterprise value of the deal is estimated at $1.2 billion. This transaction provides Woodside with a strategic foothold in the U.S. LNG market, complementing its global portfolio and positioning the company for growth in both the Atlantic and Pacific Basins.

Woodside’s CEO, Meg O’Neill, emphasized the importance of this acquisition, stating, “This is a major growth opportunity that significantly expands our U.S. LNG position, enabling us to better serve global customers and capture further marketing optimization opportunities.” O’Neill highlighted Woodside’s expertise in project execution, operations, and marketing, which will allow the company to unlock the full potential of the development.

The Woodside Louisiana LNG project is fully permitted, with front-end engineering design (FEED) already completed and civil site works well underway. The terminal, currently under construction, is expected to have a total permitted capacity of 27.6 mtpa, making it a scalable and high-quality development. Woodside has targeted a final investment decision (FID) readiness by the first quarter of 2025, with the project advancing steadily under the leadership of Bechtel, the engineering, procurement, and construction contractor.

In addition to its new U.S. LNG position, Woodside sees multiple benefits from the acquisition, including the opportunity to leverage its development and marketing expertise to generate value. The company has already received interest from potential strategic partners seeking to join the project.

The development plan for the project includes five LNG trains, split into four stages, with Phase 1 expected to produce 11 mtpa and Phase 2 targeting 5.5 mtpa. Construction has already begun, with piling work for the first two trains completed. With cost-competitive and carbon-efficient designs, Woodside anticipates development costs between $900 and $960 per tonne for both phases of the project.

Woodside Energy Group Ltd, previously known as Woodside Petroleum Ltd, is an Australian company specializing in petroleum exploration and production. It serves as the leading operator of oil and gas production in Australia and stands as the country's largest independent company solely focused on oil and gas.