Global Energy Giants Target Louisiana: Woodside Energy and Saudi Aramco Eye $17.5 Billion LNG Project

May 16, 2025

By The Bayou Insider Staff

Introduction: A Gulf Coast Power Play

In a move poised to reshape Louisiana’s energy landscape, Australian energy giant Woodside Energy and Saudi Aramco, the world’s largest oil producer, have signed a non-binding agreement to explore a joint investment in a $17.5 billion liquefied natural gas (LNG) project. The announcement came during the Saudi-U.S. Investment Forum in Riyadh, symbolizing a deepening energy alliance between major players in the Middle East and the U.S.

While the deal is still in exploratory stages, it signals serious global interest in Louisiana's role as a future powerhouse in LNG production—a sector that is becoming increasingly critical as nations look for alternatives to Russian gas and transition away from coal.

Project Overview: From Driftwood to a Strategic Energy Anchor

The project, known previously as Driftwood LNG, is situated in Calcasieu Parish and was originally spearheaded by Tellurian Inc. Woodside Energy acquired the development in late 2024 in a $1.2 billion buyout, aiming to transform it into a global LNG export hub.

Now renamed under Woodside’s portfolio, the project is designed to produce 16.5 million tonnes per annum (Mtpa) of LNG across three initial production trains. Future phases could push that output to 27.6 Mtpa, making it one of the largest such facilities in the United States.

With commercial operations slated for 2029, this plant is expected to supply energy-hungry markets across Europe and Asia, where demand for LNG is booming due to both geopolitical instability and increasing environmental regulations on coal-fired plants.

Investment and Partnerships: The Capital Behind the Commitment

In April 2025, Woodside reached a final investment decision (FID) to move forward with construction, fueled by a $5.7 billion equity investment from Stonepeak, a U.S. infrastructure firm that acquired a 40% stake in the project. This financial infusion is set to cover roughly 75% of capital expenditures over the next two years.

Now, Woodside is looking to divest another 20–30% stake, which is where Saudi Aramco comes into play. While the agreement remains non-binding, discussions are reportedly moving quickly, and the partnership could include not only financial backing but also long-term LNG offtake agreements—a critical element to ensuring the project's profitability and long-term viability.

For Louisiana, the investment could mean thousands of construction jobs, long-term operations employment, and a potential boost to state and local revenues through increased economic activity in surrounding parishes.

Strategic Collaboration: Clean Energy Meets Traditional Power

Beyond equity stakes and gas sales, the agreement is designed to foster strategic collaboration on energy transition technologies. Woodside and Aramco plan to explore lower-carbon ammonia production and carbon reduction initiatives tied to LNG—part of a broader trend where oil and gas giants diversify toward cleaner fuels.

This comes as energy companies worldwide face mounting pressure from investors, regulators, and consumers to adapt their portfolios in line with climate goals. For Louisiana, such a pivot could mean greater opportunity to be at the forefront of cleaner LNG innovation, particularly if state universities and tech firms are brought into the fold.

Broader Context: Energy, Geopolitics, and Global Strategy

Saudi Aramco’s interest in Louisiana’s Gulf Coast is part of a $90 billion economic wave of deals signed with U.S. companies across energy, artificial intelligence, data, and construction. These partnerships represent a strategic shift as Saudi Arabia seeks to diversify its economy under Vision 2030, reducing dependency on oil while expanding global partnerships in key sectors.

Meanwhile, the U.S. is increasingly viewing domestic LNG production not just as an economic asset, but as a geopolitical tool. By exporting LNG to Europe and Asia, America reduces global dependence on adversarial energy suppliers like Russia, while simultaneously boosting job creation and energy independence at home.

The Louisiana LNG project could become a cornerstone of this energy diplomacy, offering stability to global markets and strategic value to both the U.S. and its allies.

Conclusion: Louisiana at the Center of a Global Energy Shift

The emerging partnership between Woodside Energy and Saudi Aramco is more than just a business deal—it’s a sign of the times. As nations race to secure reliable, cleaner energy sources, Louisiana finds itself not only rich in resources, but strategically positioned at the crossroads of innovation, investment, and global power politics.

For the residents of Southwest Louisiana, this could mean a new era of economic opportunity. For the world, it signals that the Bayou State is no longer just an energy exporter—it’s becoming an energy strategist.

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