Woodside Finalizes Deal With Williams For Louisiana LNG And Pipeline Stake

Williams Companies

28.72 CHF -1.87%

• Charts
• News
• Analysen

Kaufen Verkaufen

(RTTNews) - Woodside has completed a strategic transaction with Williams, signing and closing an integrated investment deal in Louisiana LNG. Under the agreement, Woodside sold a 10% stake in Louisiana LNG LLC and an 80% stake—along with operatorship—of Driftwood Pipeline LLC to Williams for US$250 million, effective from 1 January 2025.

Including proportionate capital reimbursement since the effective date, total proceeds received by Woodside amount to US$378 million. As part of the partnership, Williams will contribute approximately US$1.9 billion in capital expenditure for the LNG facility and pipeline, and has assumed LNG offtake obligations for 10% of the produced volumes.

As per the deal, Williams will hold 10% equity in Louisiana LNG LLC (HoldCo), with the remaining 90% of HoldCo currently owned by Woodside.

HoldCo owns 60% equity in Louisiana LNG Infrastructure LLC (InfraCo), with the remainder being owned by Stonepeak.

Williams will hold 80% equity in Driftwood Pipeline LLC (PipelineCo) and manage construction and operations of the Line 200 pipeline. Woodside will own the remaining 20%.

HoldCo will continue to lead the gas procurement strategy and execute agreements greater than 12 months.

Williams' total share of LNG production from Louisiana LNG will be 1.6 million tonnes per annum (Mtpa). This LNG production will be supplied to Williams under an LNG SPA for approximately 1.5 Mtpa and Williams will also receive the proportionate benefit (10%) of the Louisiana LNG 1.0 Mtpa SPA previously signed with Uniper.

The effective date of the transaction is 1 January 2025 with completion having occurred simultaneously with execution. The consideration includes a payment of $250 million representing Williams' contribution to acquisition and project development costs until the effective date. Williams will also reimburse its proportionate share of development costs from 1 January 2025. The total payment received from Williams is $378 million.

Woodside's total capital expenditure for the Louisiana LNG Project is now expected to be $9.9 billion reduced from $11.8 billion at final investment decision (FID).