PERTH, May 3, 2026, 22:02 (AWST)
Woodside Energy Group’s planned Louisiana LNG plant is hitting some resistance on pricing. Reuters reports that would-be buyers are objecting to the liquefaction fees the Australian company wants to charge for U.S. export volumes. Those fees cover the cost of chilling natural gas into liquid for shipment by tanker. Reuters
This is getting attention now, with Louisiana LNG ranking as a top growth project for Woodside and a key test for new CEO Liz Westcott’s commitment to capital discipline. Woodside reported last week that the project’s foundation phase has reached 24% completion, is still tracking within budget, and aims to deliver first LNG in 2029. Business Wire
Woodside was initially asking for fees north of $2.80 per million British thermal units, Reuters reported, citing two sources. That’s above the broader U.S. market, where rates hover around $2.40 to $2.50. Cheniere Energy’s fees landed closer to $2.60, while Venture Global was around $2.30, setting a clear reference point for Woodside as it pushes to secure long-term contracts. Reuters
Woodside’s only long-term offtake deal for Louisiana LNG so far is with Germany’s Uniper—up to 2 million tonnes a year, according to Reuters. That’s roughly a quarter of Woodside’s allocated volume from the plant. The company intends to retain around 8 million tonnes for its own trading book. Reuters
The company wouldn’t comment when asked by Reuters. After Woodside’s annual meeting, Westcott pointed to continued strong demand from customers. He also said the company was “well priced in the market,” calling it “one of the lower-cost LNG suppliers.” Reuters
Buyer resistance is hitting just days after Woodside posted first-quarter operating revenue of $3.26 billion—a 7% bump from the prior quarter, but still 2% below last year’s level. Output slipped 8%, coming in at 45.2 million barrels of oil equivalent, with cyclone disruptions in Western Australia cutting into production. Average realised prices, though, moved up 11% to $63 per barrel of oil equivalent. Business Wire
Westcott pointed out that Severe Tropical Cyclone Narelle disrupted output late in the quarter. Still, higher spot prices could benefit later LNG earnings, given the lagged pricing built into many LNG contracts. She added, “cost discipline is essential,” as Woodside launches a structured business review aimed at reducing complexity and tightening accountability. Business Wire
Marc Jocum, senior product and investment strategist at Global X ETFs, told Reuters the market expects “mid-single-digit efficiency gains” from the review—translating to roughly $100 million to $200 million in annual savings across Woodside’s operating and corporate costs. Reuters
Woodside shares wrapped up Friday at A$33.12 in Sydney, slipping 1.28% before the Australian market went dark for the weekend. Over in the U.S., the company’s stock finished at $23.53 on Friday. Bloomberg
The risk is clear enough: if buyers dig in on price, Woodside faces either slimmer fees, absorbing more LNG into its own books, or a longer wait for the kind of contracts it needs to de-risk the project. The company also noted that Bechtel is bringing in structural steel for Louisiana LNG from the United Arab Emirates; fabrication hasn’t been affected, Woodside says, though it’s still weighing mitigation steps to keep supply on track. Business Wire
Woodside gave the green light to the three-train Louisiana LNG project in 2025, targeting 16.5 million tonnes per year and budgeting $17.5 billion for the LNG facilities, pipeline and management reserve. At the time, the company also noted the site’s full permitting for an eventual ramp-up to 27.6 million tonnes annually. SEC
Westcott is watching to see if that “strong interest” actually turns into signed offtake deals before investors start losing patience. Over in Australia, Woodside’s Scarborough project is much further along—96% done—and still targets its first LNG cargo in the fourth quarter of 2026. That should hand the company a tangible win as talks in Louisiana keep dragging. Business Wire
