Woodside Energy, Australia’s top gas producer, said on Wednesday it was assessing the impact of U.S. tariffs and other trade measures on its Louisiana liquefied…
Woodside Energy, Australia’s top gas producer, said on Wednesday it was assessing the impact of U.S. tariffs and other trade measures on its Louisiana liquefied natural gas plant project as it inches towards a final go-ahead.
Woodside acquired the project, formerly called Driftwood, from Tellurian for $1.2 billion last year to position itself as a “global LNG powerhouse”. The first of four development phases is expected to cost $16 billion.
In a quarterly update, CEO Meg O’Neill said the company was “assessing the potential impacts of recent tariff announcements and potential further trade measures on Louisiana LNG”, after U.S. President Donald Trump imposed universal tariffs on nearly all trading partners this month.
O’Neill said the plant was in a foreign-trade zone which allowed it to defer payment of tariffs until each LNG train was completed.
However, around half of the equipment and materials needed to develop the project would need to be imported.
“Around 25% of Louisiana LNG’s estimated capital expenditure is equipment and materials, approximately half of which is currently expected to be sourced from the U.S.,” she said.
"If energy prices come under further pressure as a result of tariff-related growth pressures, it could make things trickier for Woodside
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