Woodside Energy is prepared to make a final decision on its Louisiana LNG gas-export project without a binding agreement to bring in investors first, The Wall Street Journal reports, but only if it has high confidence that a deal will happen.
CEO Meg O’Neill says Woodside continues to talk with potential partners in Louisiana LNG and aims to be in a position from the end of March to decide whether to proceed with construction.
“The objective is to have high confidence in a selldown, either signed agreements or a pathway to binding agreements,” O’Neill says.
Woodside acquired Louisiana LNG last year through its $900 million takeover of U.S.-listed Tellurian, stating then that it didn’t intend to own all of the equity in a project that represents a major bet on global gas demand and the U.S. energy sector.
O’Neill says Woodside is negotiating with high-quality partners and that the sales process is progressing well. If a binding deal isn’t in place by the time the board meets to make a final investment decision on Louisiana LNG, then it needs to be very close, she says.
“We’re being prudent around our balance sheet, making sure we don’t get overextended,” O’Neill says.
