Perth, Australia, May 2, 2026, 05:07 AWST
- Woodside’s efforts to lock in LNG buyers for its upcoming Louisiana export facility are hitting resistance, as pricing remains the main sticking point in negotiations.
- This matters: Louisiana LNG stands at the center of Woodside’s ambitions to expand outside its Australian gas roots.
- Woodside shares ended the session down in Sydney, despite topping first-quarter revenue forecasts earlier in the week.
Woodside Energy Group Ltd. is having a tough time lining up buyers for liquefied natural gas from its proposed Louisiana export plant, with liquefaction fees coming in higher than current U.S. market rates, according to two people with knowledge of the situation who spoke to Reuters. Liquefaction fees refer to the cost for converting gas into liquid for tanker transport.
This isn’t some minor play for Woodside. The company is pitching Louisiana LNG as a centerpiece for its North American growth, targeting a first phase with three trains and 16.5 million tonnes per annum. It’s all part of a broader push to boost the global LNG portfolio to roughly 24 mtpa into the 2030s. ([Woodside][2])
So far, the Australian producer has lined up just one long-term sales and purchase deal for the project: an agreement with Germany’s Uniper, good for as much as 2 million tonnes annually. That figure represents close to a quarter of Woodside’s output share from the facility, excluding what it intends to hold back for its own portfolio, Reuters reports.
According to people with knowledge of the discussions, Woodside initially pitched liquefaction fees above $2.80 per million British thermal units—well above the wider U.S. market range, which sits around $2.40 to $2.50. One source said Woodside has since dropped its ask to about $2.60. Cheniere Energy comes in at roughly $2.60, while Venture Global’s rate is nearer $2.30, that person added.
Woodside wouldn’t comment to Reuters about the pricing negotiations. Following the annual meeting, Chief Executive Liz Westcott told reporters, “Many customers are seeing the benefit of being geographically diversified, and we are very comfortable with how the process is going in Louisiana LNG.” She added that customer interest continues to be strong. Investing
Woodside’s latest first-quarter update put the Louisiana LNG foundation phase at 24% complete as of the end of March, with Train 1 finishing the quarter at 31%. The company reiterated that the project is still tracking both on budget and on schedule, eyeing first LNG cargo in 2029.
Just days after Woodside reported $3.26 billion in operating revenue for the March quarter—beating the $3.05 billion Visible Alpha consensus—buyers are pushing back. The company also announced plans to review its operations, aiming to streamline and sharpen accountability. Marc Jocum, senior product and investment strategist at Global X ETFs, told the market is watching for “mid-single-digit efficiency gains,” translating to about $100 million to $200 million annually, as proof that the review is more than talk. Reuters
Woodside shares in Australia slipped 1.28% on Friday, settling at A$33.12. The stock moved in a range from A$32.92 to A$33.45, according to data from Investing.com.
But the risk facing Woodside stands out: if customers keep resisting on price, the company could have to settle for slimmer fees, stretch out timelines for locking in contracts, or rely more on internal portfolio moves to allocate volumes. Each scenario could bring investor scrutiny back to returns from a project Woodside touts as a key cash generator over the coming decade.
The rest of the portfolio is still offering some cushion. The company kept its 2026 production target steady at 172 million to 186 million barrels of oil equivalent, posted an average realised price of $63 per barrel for the quarter, and noted Scarborough in Western Australia is now 96% done, with the first LNG cargo set for the fourth quarter.
Woodside is still handling cyclone recovery work in Western Australia. On May 1, the company pledged A$1 million toward relief and rebuilding, after Tropical Cyclone Narelle hit Exmouth—roughly 1,100 km north of Perth—leaving damage to homes, businesses, and core services. ([Woodside][7])
[2]: https://www.woodside.com/what-we-do/growth-projects/woodside-louisiana-lng “
Woodside Louisiana LNG
“
[7]: https://www.woodside.com/media-centre/news-stories/story/woodside-support-to-help-cyclone-impacted-locals-get-back-on-their-feet “
Woodside support to help cyclone-impacted locals get back on their feet
“
