Woodside completes $1.2bn Tellurian acquisition; launches Woodside Louisiana LNG

Global energy company Woodside has completed the $1.2bn acquisition of natural gas firm Tellurian and its Driftwood LNG project.

Woodside first announced the deal in July and completed it today (9^th October).

Read more: Woodside to acquire Tellurian and Driftwood LNG in $1.2bn deal 

As a first move, Woodside has renamed the Driftwood LNG project to Woodside Louisiana LNG, a move which its CEO, Meg O’Neill, has described as a significant new chapter for the company.

She added, “This is a major growth opportunity that significantly expands our US LNG position, enabling us to better serve global customers and capture further marketing optimisation opportunities across both the Atlantic and Pacific Basins.”

Woodside Louisiana LNG is an under-construction, pre-final investment decision (FID), LNG production and export terminal in Calcasieu Parish. Once fully operational, it is expected to have a total capacity of 27.6 million tonnes per annum.

It is hoped that FID will be achieved in the first quarter of 2025, with the Tellurian team and engineering, procurement and construction contractor Bechtel having already completed substantial work.

O’Neill continued, “Our acquisition provides a new strategic direction for this development. We are also pleased with the inbounds received from multiple parties looking to enter the opportunity as a strategic partner.”

Earlier this year (Feb 2024), the US Federal Energy Regulatory Commission (FERC) issued an extension to its order authorising the development of Driftwood LNG, near Lake Charles, Louisiana, requiring the site to be complete by April 2029.

Tellurian applied for the extension in 2023 to ensure it had enough time to complete the construction of all five plants in the facility.

Read more: FERC extends deadline for Tellurian’s Driftwood LNG to 2029

Louisiana currently has three of the US’s seven LNG export terminals. The state also holds 8% of the nation’s natural gas reserves.