Australia’s Woodside signs deal with Bechtel to develop Louisiana LNG project Reuters


SINGAPORE (Reuters) – Australia’s Woodside (OTC: ) Energy Group said on Thursday it had signed an engineering, procurement and construction (EPC) contract with U.S. engineering firm Bechtel to develop a liquefied natural gas (LNG) project in Louisiana.

The EPC contract will cover the development of the foundation for three production lines of the project, with a capacity of 16.5 million tons per year.

The oil and gas producer also said it intends to make a final investment decision (FID) by the first quarter of 2025.

In total (EPA:) Louisiana LNG expenditures from December through the end of the first quarter of 2025 are projected to be up to $1.3 billion, which is included in the total estimated costs for foundation development,” Woodside said in a statement.

The estimated cost to develop the project’s foundations is $900-$960 per tonne of LNG, unchanged from the range at the time of purchase.

© Reuters. FILE PHOTO: Australia's Woodside Energy Group's exhibition stand is seen at the 2022 World Gas Conference in Daegu, South Korea May 23, 2022. REUTERS/Florence Tan/File Photo

Woodside fully owns the Louisiana LNG project after acquiring developer Tellurian (NYSE: ) Inc for $1.2 billion in October. It seeks to sell a 50% stake in the project.

The project has a total permitted capacity of 27.6 million tons per year.





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