Woodside Energy Warns Tariffs Could Impact Louisiana LNG Project

Irina Slav, a writer for Oilprice.com with extensive experience in the oil and gas industry, reported that the ongoing tariff dispute initiated by President Trump could have implications for the Louisiana LNG project, according to warnings from its majority owner, Woodside Energy. The CEO of the Australian energy company, Meg O’Neill, stated in a recent update that a significant portion of the project’s estimated capital expenditure is allocated for equipment and materials, with about half expected to be sourced from the U.S. Any potential tariffs might disrupt the company’s plans for the facility. Market analysts expressed concerns that further pressure on energy prices due to tariff-related growth challenges could complicate matters for Woodside in the future.

Woodside acquired the former Driftwood LNG project as part of its purchase of Tellurian for $1.2 billion, aiming to expand its LNG development opportunities in the U.S. In an effort to share the costs for the initial phase of the Louisiana LNG project, estimated at $16 billion, Woodside has been seeking partners and recently sold a 40% stake to Stonepeak for $5.7 billion. Stonepeak will cover a significant portion of the capital expenditure for 2025 and 2026, allowing Woodside to maintain cash flow while advancing its presence in the growing U.S. LNG market. The total projected cost for the foundational phase is expected to range between $900 and $960 per ton, excluding pipeline infrastructure.