Woodside Energy, an Australian oil and gas giant, has embarked on a significant expansion in the United States with a $27 billion investment in a liquefied natural gas (LNG) export terminal.
The project, located on the US Gulf Coast, aims to enhance the country’s LNG production and shipping capabilities by 2029.
This deal reflects President Donald Trump’s drive for American “energy dominance” on the global stage, although it comes with notable risks in the face of volatile international energy markets.
A Key Player in US Energy Expansion
Woodside’s $17.5 billion venture, which includes the construction of a terminal that will liquefy natural gas for export, signifies a bold step towards increasing US energy exports. This marks the company’s most substantial project since it purchased the Louisiana LNG terminal for $1.2 billion in 2024.
By building the new export terminal, Woodside intends to supply liquefied gas to global markets, particularly across Europe and Asia, strengthening its position as a key player in the LNG industry.
The expansion also aligns with Donald Trump’s ambitions to bolster the United States’ energy dominance. Since re-entering the White House, Trump has pushed for policies to reduce restrictions on fossil fuel production, including orders to expedite LNG production and push for more international buyers of American gas.
According to reports, this new project is expected to help solidify the US’s standing as the world’s largest LNG supplier, a goal central to Trump’s energy policy.
Woodside’s Strategic Investment Amid Global Challenges
However, the decision to proceed with this $27 billion project comes at a time of heightened uncertainty in the global energy landscape. The ongoing trade tensions between the US and China, exacerbated by Trump’s tariffs, have caused volatility in energy markets, complicating the development of large-scale projects like the Louisiana LNG terminal.
Woodside’s CEO, Meg O’Neill, acknowledged these risks, stating that the company is assessing how tariffs could impact the terminal’s construction costs. The project will rely on significant imports of materials like metals, which may be affected by the trade standoff.
Despite these uncertainties, O’Neill remains confident in the long-term prospects for LNG, predicting that demand will surge in Asia due to growing populations and economic development.
Furthermore, Woodside’s commitment to the project reflects a strategic shift in its operations, diversifying its dependence on LNG exports from Western Australia.
While the company faces internal shareholder opposition to its decarbonisation strategies, it remains steadfast in its belief that LNG will play a key role in global efforts to reduce emissions, with governments increasingly opting for gas over coal to curb carbon output.
