Louisiana's $30 billion bet on LNG is moving forward
Picture a $30 billion LNG export terminal rising near Lake Charles, Louisiana that’ll churn out 27.6 million tons of liquefied natural gas (LNG) annually. Once called Driftwood LNG under Tellurian Inc., this project hit snags for years--until Australia’s Woodside Energy swooped in, acquiring Tellurian for $900 million in October 2024 and renaming it Woodside Louisiana LNG. Here’s how this decade-long saga is taking a sharp turn toward reality.
From vision to pivot
Tellurian kicked off the Driftwood dream in 2016, landing FERC pre-filing approval that June and a $207 million boost from Total by December. The goal? A five-train LNG behemoth. Permits came through by April 2020, but financing woes and market dips stalled progress. Construction crept forward--site prep and piling started in March 2022--but Tellurian couldn’t seal the deal. It’s a familiar tale in the LNG world, much like the rollercoaster of Golden Pass LNG, which I’ve tracked as it nears its own finish line.
Enter Woodside. On October 9, 2024, they closed a $1.2 billion deal (including debt) for Tellurian, paying $1 per share. With fresh capital and expertise, Woodside’s now driving the renamed Woodside Louisiana LNG toward a final investment decision (FID) targeted for Q1 2025.
Gearing up and counting down
As of April 2024, crews were busy with site prep, excavation, backfill, stormwater systems, and pile driving—slow but steady progress. Woodside’s taken the reins, aiming for LNG exports by 2028. In February 2024, FERC extended the completion deadline to April 18, 2029, giving breathing room. Unlike its “limbo” days under Tellurian, the project’s now buzzing with momentum, with Woodside reporting interest from potential partners eager to join the ride. This surge aligns with a broader U.S. energy push--think new pipelines on the horizon and Dominion Energy’s recent wins, both of which I’ve covered as the sector heats up.
Why it matters and whats at stake
This isn’t just a lifeline for a stalled project; it’s a bet on LNG’s global boom. Woodside’s CEO Meg O’Neill calls it a chance to “better serve customers” across the Atlantic and Pacific. With 27.6 million tons per annum capacity, it could triple Woodside’s current LNG output and cement the U.S. as an LNG titan. It’s a scale that echoes ventures like the Tioga Pathway, which I’ve spotlighted for its potential to redefine gas transport. But of course, it’s not without baggage and politics… environmentalists flag emissions, and the price tag’s steep.
The bottom line…
Woodside Louisiana LNG is no longer a pipedream on life support. With Tellurian’s exit and Woodside’s muscle, this project’s trajectory has flipped from uncertain to actionable. FID looms in 2025, and if it sticks the landing, 2028 could mark Louisiana’s next big energy win. A decade in the making, this LNG giant might just deliver.
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