The tariff battle that President Trump began earlier this yr may have an effect on the Louisiana LNG mission, its majority proprietor, Woodside Power, has warned.

The Australian power main’s CEO, Meg O’Neill stated in a quarterly replace right now that “Round 25% of Louisiana LNG’s estimated capital expenditure is tools and supplies, roughly half of which is at the moment anticipated to be sourced from the U.S.” This implies the opposite half could be imports and tariffs may intrude with the corporate’s plans for the power.

“If power costs come beneath additional strain because of tariff-related development pressures, it may make issues trickier for Woodside down the monitor,” the chief market analyst of KCM Commerce World instructed Reuters in feedback on the information.

Woodside purchased the previous Driftwood LNG mission as a part of its acquisition of Tellurian for $1.2 billion. The deal “provides a scalable US LNG growth alternative to our present roughly 10 Mtpa of fairness LNG in Australia,” Woodside chief government Meg O’Neill stated on the time. Then, this yr, studies emerged that Woodside was searching for companions within the initiatives, in search of to promote as much as 50% of the possession.

Woodside wants companions to shoulder a part of the prices for the event of the primary part of Louisiana LNG, estimated at $16 billion. This primary part could have an annual manufacturing capability of 11 million tons of liquefied pure fuel. Upon completion of all 4 phases, Louisiana LNG ought to have a complete capability of 27.6 million tons of the superchilled commodity.

Earlier this month, the Australian firm bought a 40% stake in Louisiana LNG to New York-based infrastructure funding agency Stonepeak for $5.7 billion. Underneath the deal, Stonepeak will cowl 75% of capital expenditure for 2025 and 2026, serving to Woodside protect money move whereas nonetheless advancing a serious foothold within the booming U.S. LNG market. The entire ahead price for the inspiration part is anticipated to be between $900 and $960 per tonne, excluding pipeline infrastructure.

By Irina Slav for Oilprice.com

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