Woodside Energy, Australia’s largest gas producer, is reviewing the potential impact of recent U.S. trade policies on its $1.2 billion liquefied natural gas (LNG) project in Louisiana. The company, which acquired the project from Tellurian last year, aims to become a global LNG leader. The first of four planned development phases carries a projected cost of $16 billion.

In a quarterly update released Wednesday, CEO Meg O’Neill said the company is “assessing the potential impacts of recent tariff announcements and potential further trade measures on Louisiana LNG.” The move follows President Donald Trump’s decision to impose broad tariffs on nearly all U.S. trading partners.

Although the LNG facility is located within a designated foreign-trade zone—allowing for deferred tariff payments until each production train is completed—Woodside expects to import a significant portion of the required materials and equipment.

“Approximately 25% of Louisiana LNG’s capital expenditure relates to equipment and materials, and about half of that is anticipated to be sourced from outside the United States,” O’Neill said.

To enhance the project’s economic viability, Woodside recently sold a 40% stake in the LNG export terminal to U.S.-based investment firm Stonepeak. Under the agreement, Stonepeak will fund 75% of the project’s capital expenditures in 2025 and 2026. The company also signed its first LNG offtake deal, securing a contract with Germany’s Uniper for 1 million metric tons per year.

“We are pleased with the strong level of interest from potential strategic partners and are advancing discussions targeting further equity sell-down,” O’Neill said. “We are progressing at pace towards a final investment decision on Louisiana LNG, positioning Woodside as a global LNG powerhouse.”

The update coincided with Woodside reporting first-quarter revenue of $3.32 billion, boosted by strong gas hub-linked pricing and the start-up of the Sangomar oil project in Senegal. The result exceeded analysts’ expectations, which averaged $2.79 billion, and marked a 13% increase from the $2.95 billion posted in the same quarter last year.

However, quarterly revenue declined 5% compared to the previous quarter. The dip was attributed to falling oil-linked prices, weather disruptions from a cyclone at the North West Shelf project, and unplanned outages at the company’s Pluto LNG facility.

Woodside maintained its full-year 2025 production and capital expenditure guidance.