Major LNG acquisition for Woodside

Woodside Energy announced the acquisition of all shares of Tellurian, including its US Gulf Coast Driftwood LNG project.

The transaction includes a cash payment of approximately $900 million and expands Woodside Energy’s existing LNG portfolio in Australia with a scalable U.S. LNG growth opportunity.

“The acquisition of Tellurian and its capabilities to develop Driftwood LNG position Woodside as a global LNG powerhouse,” said Meg O’Neill, CEO of Woodside Energy.

“Having a complementary position in the U.S. would allow us to better serve our clients around the world and leverage further opportunities to optimize our marketing efforts in the Atlantic and Pacific basins.

O’Neill said the Driftwood LNG project has a competitive advantage.

“Woodside expects to leverage its global LNG expertise to unlock this fully-certified investment and expand our relationship with Bechtel, which is the EPC contractor for both Driftwood LNG and our Pluto Train 2 project in Australia,” O’Neill said.

“With this acquisition, we are executing on our strategy to grow in the energy transition. Woodside believes LNG will play a key role in the energy transition and is well positioned to deliver the energy the world needs while delivering significant value to our shareholders.”

Driftwood LNG is a pre-Final Investment Decision (FID) development opportunity located near Lake Charles, Louisiana. The current development plan includes five LNG trains in four phases with a total allowable capacity of 27.6 Mtpa.

Foundation development includes Phase 1 (11 Mtpa) and Phase 2 (5.5 Mtpa). Woodside targets FID readiness for Phase 1 of the Driftwood LNG development opportunity by Q1 2025.

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