NEW ORLEANS - Woodside Energy has issued a final investment decision approving the $17.5 billion Louisiana liquefied natural gas (LNG) export project in Calcasieu Parish on the Gulf Coast. It will tap into U.S. natural gas, cool and liquefy it, and export LNG to customers in Europe and Asia. Woodside is aiming for production to be up and running by 2029.
The “greenfield” facility is being built from scratch and is already fully permitted by the U.S. Federal Energy Regulatory Commission and Department of Energy.
It is being hailed as “the largest single greenfield project investment in Louisiana’s history.” The previous record was held by large petrochemical and LNG projects such as Sasol’s Lake Charles chemicals complex and other Gulf Coast facilities in the range of $9–13 billion.
Because Woodside Energy is an Australian-headquartered company, this project is classified as foreign direct investment (FDI) and so this also makes it the single largest FDI in the state’s history.
“As the largest single foreign direct investment in Louisiana’s history, Louisiana LNG will also be the first greenfield U.S. LNG project to go to FID since July 2023,” said Woodside’s CEO, Meg O'Neill.
The Louisiana LNG project will consist of a three-train liquefaction plant with 16.5 million tonnes per annum (Mtpa) capacity, fully permitted for possible expansion up to 27.6 Mtpa.
It will leverage existing pipeline networks, but Woodside Energy will also invest around $1.1 billion in new pipeline construction:
• Driftwood Mainline Pipeline: Approximately 96 miles long, this pipeline will pass through Evangeline, Acadia, Jefferson Davis, and Calcasieu parishes.
• Line 200 and Line 300: Dual 42-inch pipelines, measuring about 36.9 and 33.9 miles respectively, connecting Ragley in Beauregard Parish to Carlyss in Calcasieu Parish.
Environmental organizations have contested federal programs that facilitate pipeline construction through wetlands. For example, lawsuits have been filed against the U.S. Army Corps of Engineers' Nationwide Permit 12, which streamlines the approval process for pipelines crossing water bodies.
In addition, local communities and environmental organizations in the past have raised concerns about the potential impacts of LNG projects on ecosystems mostly involving the risks of natural gas leaks from pipelines.
For nearly two years no greenfield LNG terminal had been given the financial go-ahead in the U.S. until Woodside’s decision. This gap is largely attributed to U.S. federal policy under the Biden Administration, which had put a temporary freeze on approvals for new LNG export projects.
Governor Landry and Louisiana Economic Development (LED) were instrumental in landing the Louisiana LNG project, from offering incentive packages and workforce support to aligning state policies with the needs of a large LNG development.
During the construction phase, Woodside estimates the project will support roughly 15,000 jobs with a large share of those jobs concentrated in Louisiana. These include direct construction and engineering jobs on-site, as well as indirect jobs with contractors, suppliers, and support services including equipment manufacturing and transportation. In addition, thousands of construction workers will be needed on the ground in Louisiana at the peak of building the LNG plant and pipeline.
