$5.7B LNG Deal Signals a New Age of Energy Alliances

Woodside's Stonepeak deal fast-tracks a US LNG hub, setting a bold trend in co-funded, high-stakes energy ventures

16 Apr 2025

Woodside Energy has agreed to sell a 40 per cent stake in its Louisiana liquefied natural gas project to US investment group Stonepeak for $5.7bn, a deal that reduces the Australian producer’s funding burden while keeping it in operational control of the development.

The transaction, announced in April 2025, relates to the LNG terminal on the US Gulf Coast that Woodside acquired through its purchase of Tellurian last year. The project is designed to export up to 27.6mn tonnes of LNG a year once fully built.

Phase one of the development is expected to cost about $16bn, underlining the scale and capital intensity of new LNG projects. By bringing in Stonepeak as a partner, Woodside is sharing financial risk while retaining responsibility for construction and operations.

The structure reflects a broader shift in how large energy infrastructure is financed, with producers increasingly turning to institutional investors to support balance sheets and manage exposure.

“This is the kind of financial structure we’ll see more of,” said Laura Hanley of GasMarkets Advisory. “Energy firms want autonomy, and investors want resilient returns. This checks both boxes.”

The project has secured key federal permits and is moving towards construction readiness, although it continues to face environmental and community scrutiny at the local level. Additional funding from Stonepeak is expected to improve Woodside’s ability to progress the development.

The deal also highlights the growing importance of the US Gulf Coast as a global LNG export hub, as demand rises in Europe and Asia following efforts to diversify gas supply.

For investors and developers, the Louisiana project illustrates how partnerships between operators and infrastructure funds are becoming central to delivering large-scale energy assets amid rising costs and regulatory complexity.