Woodside Energy, Australia’s largest natural gas producer, plans to divest an additional 20% to 30% stake in its $17.5 billion Louisiana LNG project, according to multiple media reports. The move is intended to bring the company’s ownership in the project’s holding entity down to approximately 50%, in line with its long-term investment strategy.

Speaking at the Macquarie Australia Conference, Chief Operating Officer Liz Westcott said the planned selldown follows increased interest in the project since it received final investment approval last week. “Our goal will be to sell down in the order of 20%-30% of Hold Co. That will give us a targeted investment capital of around 50%,” Westcott said.

Woodside granted final approval for the project last week, citing confidence in strong demand from Europe and Asia, along with continued U.S. government support for fossil fuel development. The company projects an internal rate of return of 13% and a payback period of approximately seven years.

The Louisiana LNG facility is expected to begin producing gas in 2029 and generate an estimated $2 billion in net operating cash annually throughout the 2030s.

The approval came on the heels of Woodside’s agreement to sell a 40% stake in the project’s infrastructure entity to investment firm Stonepeak. Under the deal, Stonepeak will contribute $5.7 billion toward the total capital expenditure.

Woodside’s plan to reduce its equity stake further is consistent with analyst expectations, who view additional divestment as key to minimizing financial exposure and reinforcing the project’s market value.

“Conversations with potential partners are ongoing,” Westcott added. “More parties became interested following the final investment decision. We're going to be patient and make sure we get the right parties, but we're also keen to move along as well.”

The company sees strategic benefit in diversifying project ownership while retaining a significant stake, allowing it to participate in long-term revenue without bearing the full capital burden.

Woodside continues to position itself as a major player in the global liquefied natural gas market. With the Louisiana LNG project now fully sanctioned and momentum building, the company is focused on securing the right investment partners to share in both the risks and rewards of the venture.