Woodside targets a further 20%-30% saledown of the $17.5 billion Louisiana LNG Project

Woodside Energy is Australia's largest natural gas producer. It said Tuesday that it will seek to sell an additional 20%-30% stake of Louisiana LNG. Interest in the $17.5billion project has grown since its approval last week.

Liz Westcott said that the sale of Woodside’s wholly-owned holding company would enable it to reach its goal of 50% ownership.

She told the Macquarie Australia Conference that "our goal is to sell Hold Co down by 20%-30%. This will give us an investment capital target of about 50%."

Woodside gave its final approval for Louisiana LNG in the last week. They were confident that a fossil fuel-friendly U.S. government and the demand from Europe and Asia will deliver an internal return rate of 13% with a seven-year payback period.

The project will deliver its first gas in 2029, and generate net operating cash of $2 billion per year in the 2030s.

Woodside had agreed to sell 40% of its stake in the infrastructure company for the project to Stonepeak. Stonepeak will contribute $5.7billion towards the capital costs.

Woodside's target of a 20-30% saledown was in line with expectations from analysts, who considered further divestment to be crucial for reducing risks and validating the project.

Westcott said that the conversations with potential partners continued and that more parties showed interest after the project had been approved.

She said, "We will be patient to ensure we get the correct parties but we are also eager to move forward as well."

(source: Reuters)