Wedoany.com Report-Oct. 23, U.S.-based gas pipeline operator Williams (WMB.N) announced a $1.9 billion investment in Woodside Energy's (WDS.AX) $17.5 billion liquefied natural gas (LNG) production and export terminal currently under construction in Louisiana. The companies disclosed this agreement on Thursday, highlighting a strategic partnership to enhance natural gas infrastructure.

A view shows Woodside Energy's headquarters in Perth, Australia, April 19, 2025

As part of the deal, Williams will acquire a 10% stake in the project's infrastructure company. Additionally, it will hold an 80% interest in the Driftwood pipeline, designed to deliver natural gas to the Louisiana LNG facility. This arrangement strengthens the supply chain for the terminal's operations.

Woodside's stake in the Louisiana LNG project will adjust to 50% following this transaction. Earlier in April, the Australian energy firm sold a 40% share to U.S. investor Stonepeak for $5.7 billion, reflecting ongoing efforts to optimize ownership structures.

From this latest agreement, Woodside anticipates receiving $378 million in total proceeds. This will reduce the company's overall capital expenditure on the project to $9.9 billion, down from an earlier projection of $11.8 billion, allowing for more efficient resource allocation.

In Sydney trading on Thursday, Woodside's shares rose by up to 4.1%, reaching A$24.11—the highest level since September 17. This positive market response underscores investor confidence in the project's progress and partnerships.

Williams will also secure a 1.5 million metric tons per annum (mtpa) portion of LNG production from the Louisiana facility. Furthermore, it will gain 10% of a 1 mtpa offtake agreement that Woodside had previously established with Uniper (UN0k.DE), ensuring steady access to output.

The Louisiana LNG project, set to achieve a capacity of 16.5 mtpa, marks a significant milestone as the first U.S. export initiative to reach a final investment decision in 2025. Commercial operations are projected to commence with the first LNG shipment in 2029, contributing to expanded global energy supply options.

Since January, when the current U.S. administration took office, over 65 mtpa of additional U.S. LNG capacity has received financial commitments. This development aligns with broader initiatives to increase domestic oil and gas output, including executive measures to streamline production processes.

Meanwhile, oil prices declined for a second consecutive day on Tuesday, influenced by factors such as potential oversupply and uncertainties in demand. These market dynamics continue to shape the energy sector's landscape.

The collaboration between Williams and Woodside exemplifies efforts to build resilient LNG infrastructure, supporting reliable energy exports from Louisiana. As the project advances, it positions both companies to meet rising global needs for cleaner fuels while fostering economic growth in the region.