Momentum for U.S. liquefied natural gas grows By EPN Staff Australia's largest oil and gas company has approved a $17.5 billion liquefied natural gas (LNG) facility in Louisiana, another sign of the United States' growing LNG export market and of Louisiana’s momentum in the broader energy economy. The Woodside Energy project, simply called Louisiana LNG, is expected to produce up to 16.5 million metric tons a year starting in 2029. The project is the largest single foreign direct investment in Louisiana's history and positions Woodside to supply more than 5% of global LNG demand in the 2030’s, according to the company. This is one of several recent economic wins for Louisiana, particularly in the energy sector, which led Reuters recently to dub Louisiana “The crafty U.S. state that's showing how to thrive under Trump.” Why it matters The Louisiana LNG project underscores the United States' ascent as an LNG powerhouse. Since becoming the world's top LNG exporter in 2023, the U.S. has seen a stream of terminal and other infrastructure announcements. In its forecasting, Woodside sees worldwide LNG supply shortfalls starting in about 2030 – shortly after its new facility would come online. LNG processing and exports are helping drive a broader remaking of the Louisiana economy. Gov. Jeff Landry’s administration said Woodside’s announcement put the state over $60 billion in promised capital investments since he took office at the start of 2024. Other major projects include Meta’s planned $10 billion data center and Hyundai’s planned $5.8 billion steel plant. The bigger picture The federal Energy Information Administration expects U.S. LNG exports to more than double by 2028. This worldwide demand is a major driver for domestic natural gas prices, which the EIA expects to increase steadily over the next two years. The push also creates construction jobs. The Woodside project alone “will support approximately 15,000 national jobs during construction,” according to the company. Additional details Woodside won’t go it alone with Louisiana LNG. Stonepeak, an investment firm that focuses on infrastructure, has promised $5.7 billion for the project and will cover 75% of capital costs in 2025 and 2026. “With the need to bring significant additional capacity online over the coming years, we have strong conviction in the critical role Louisiana LNG will play in the US LNG export market,” James Wyper, a Stonepeak investment director, said in a release announcing the position. Woodside will put $11.8 billion toward capital costs, the company said. The facility will feature three trains, with expansion potential to add two more, the company said.
