Investing.com-- Woodside (OTC:WOPEY) Energy Ltd (ASX:WDS) has engaged in discussions with several major energy players regarding the sale of stakes in its Louisiana LNG project, Reuters reported on Tuesday citing multiple sources.
The potential buyers include Tokyo Gas Co (TYO:9531), JERA, and MidOcean Energy, which is backed by Saudi Aramco (TADAWUL:2222). U.S. pipeline operator Williams Companies Inc (NYSE:WMB) has also shown interest, according to the Reuters report.
The decision to sell comes amid rising global demand for liquefied natural gas (LNG), with the return of Donald Trump to the U.S. presidency seen as a potential boost to American energy exports.
By increasing LNG imports from the U.S., buyers may also seek to mitigate potential trade tensions with the new administration, Reuters reported.
Woodside is looking to divest 50% of the first phase of the project, which is expected to cost around $16 billion. The full development, planned in four phases, would produce 27.6 million metric tonnes per annum (MTPA) once completed, the report stated.
CEO Meg O’Neill previously indicated that the company aims to finalize its partner selection by March 2025, and the report suggests that the bidding window has now closed.
With all necessary permits secured, Woodside is pushing for higher liquefaction fees, ranging from $2.70 to $2.90 per mmBtu, slightly above current market rates, according to the report.
While the company has not publicly commented on the bidding process, it has confirmed strong interest from high-quality investors, Reuters reported.