Woodside’s Louisiana LNG signs gas supply deal with BP

Market: Natural gas
30/04/25

Australian independent Woodside Energy has signed a long-term supply deal with oil major BP for feedstock gas for the first two stages of its Louisiana LNG project, totalling 16.5mn t/yr, ahead of first production planned for 2029.

The agreement is the first in a series of planned deals enabling diversified supply into the three-train Louisiana LNG project, with up to 640bn ft³ (18bn m³) to be piped to the facility via the proposed Line 200, Woodside said on 30 April.

Lines 200 and 300 form one of two interstate pipeline schemes proposed as part of the project. The dual 42-inch pipelines running about 37 miles (60 km) and 34 miles respectively from Ragley in Beauregard Parish to Carlyss in Calcasieu Parish, Louisiana, have planned capacity of 4.6bn ft³/d with maximum seasonal capacity of 5.7bn ft³/d, Woodside said.

The 96-mile Driftwood mainline pipeline to be built through Evangeline, Acadia, Jefferson Davis and Calcasieu parishes will average 4bn ft³/d, Woodside said.

Woodside reached a final investment decision for Louisiana LNG on 29 April after selling down 40pc of the project's infrastructure to US-based investment firm Stonepeak in early April. The facility holds permits for 27.6mn t/yr of capacity, with an eventual total of five trains planned.

By Tom Major

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

16/05/25

US House panel votes down Republican megabill

Washington, 16 May (Argus) — A key committee in the US House of Representatives voted today to reject a massive budget bill backed by President Donald Trump, as far-right conservatives demanded deeper cuts to clean energy tax credits and social spending programs. The House Budget Committee failed to pass the budget reconciliation bill in a 16-21 vote, with four House Freedom Caucus members — Ralph Norman (R-South Carolina), Chip Roy (R-Texas), Josh Brecheen (R-Oklahoma) and Andrew Clyde (R-Georgia) — voting no alongside Democrats. A fifth Republican voted no for procedural reasons. The failed vote will force Republicans to consider major changes to the bill before it comes up for a vote on the House floor as early as next week. Republican holdouts say the bill would fall short of their party's promises to cut the deficit, particularly because it would front-load increased spending and back-load cuts. The bill is set to add $3.3 trillion to the deficit, or $5.2 trillion if temporary provisions were permanent, according to estimates from the nonpartisan Committee for a Responsible Federal Budget. Some critics of the bill said the proposed cut of $560bn in clean energy tax credits is not enough, because the bill would retain some tax credits for new wind and solar projects. "A lot of these credits have been in existence for 30 or 40 years, and you talk about giveaways, we want to help those who really need help," Norman said ahead of his no vote. "That's the heart of this. Sadly, I'm a no until we get this ironed out." Negotiations will fall to House speaker Mike Johnson (R-Louisiana), who can only lose three votes when the bill comes up for a vote by the full House. But stripping away more of the energy tax credits enacted in the Inflation Reduction Act could end up costing Johnson votes among moderates. More than a dozen Republicans on 14 May asked to pare back newly proposed restrictions on the remaining clean energy tax credits. Ahead of the failed vote, Trump had pushed Republicans to support what he calls the "Big Beautiful Bill". In a social media post, he said "Republicans MUST UNITE" in support of the bill and said the party did not need "GRANDSTANDERS". The failed vote has parallels to the struggles that Democrats had in 2021 before the implosion of their push to pass their sprawling "Build Back Better" bill, which was later revived as the Inflation Reduction Act. Republicans say they will work over the weekend on a compromise. The House Budget Committee has scheduled another hearing at 10pm on 18 May to attempt to vote again on the budget package, but any changes to the measure would occur later, through an amendment released before the bill comes up for a vote on the House floor. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more

News

Trump says US will soon set new tariff rates

16/05/25

News

16/05/25

Trump says US will soon set new tariff rates

Washington, 16 May (Argus) — The US will unilaterally set new tariff rates on imports from select trading partners instead of holding negotiations over import tax levels, President Donald Trump said today. In the next 2-3 weeks "we'll be telling people what they will be paying to do business in the US," Trump told a group of US and UAE business executives in Abu Dhabi today. Trump contended that more than 150 US trading partners have expressed interest in negotiating with his administration, adding that "you're not able to see that many countries." Trump's administration since 5 April imposed a 10pc baseline tariff on imports from nearly every US trading partner — with the notable exception of Canada, Mexico and Russia. Trump paused his so-called "reciprocal tariffs" until 8 July, nominally to give his administration time to negotiate with foreign countries subject to those punitive rates. The reciprocal tariffs would have added another 10pc on top of his baseline tariff for imports from the EU, while the cumulative rate would have been as high as 69pc on imports from Vietnam. Trump in April suggested that 200 deals with foreign trade partners were in the works. Treasury secretary Scott Bessent has said the US is only negotiating with the top 18 trading partners. The trade "deals" clinched by the Trump administration so far merely set out terms of negotiations for agreements to be negotiated at a later date. The US-UK preliminary deal would keep the US tariff rate on imports from the UK at 10pc, while providing a quota for UK-manufactured cars and, possibly, for steel and aluminum. The US-UK document, concluded on 9 May, explicitly states that it "does not constitute a legally binding agreement." The US-China understanding, reached on 12 May, went further by rolling back some of the punitive tariff rates but left larger trade issues to be resolved at a later date. The Trump administration would keep in place a 20pc extra tariff imposed on imports from China in February-March and a 10pc baseline reciprocal tariff imposed in April. The US will pause its additional 24pc reciprocal tariff on imports from China until 10 August. Conversely, China will keep in place tariffs of 10-15pc on US energy commodity imports that it imposed on 4 February, and 10-15pc tariffs on US agricultural imports, imposed in March. It will maintain a 10pc tariff on all imports from the US that was imposed in April, but will pause an additional 24pc tariff on all US imports until 10 August. These rates are on top of baseline import tariffs that the US and China were charging before January 2025. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Kuwait's Kufpec gets OK to develop Indonesian gas field

16/05/25

News

16/05/25

Kuwait's Kufpec gets OK to develop Indonesian gas field

Singapore, 16 May (Argus) — Kuwait's Kufpec, a unit of state-owned KPC, has won approval from the Indonesian government for a plan of development for the Anambas gas field located in the West Natuna Sea offshore Indonesia. The Anambas field is located in the Natuna basin and has an estimated gas output of about 55mn ft³/d. Kufpec will invest around $1.54bn into the development of the field, which is planned to come on stream in 2028. The approved plan of development outlines a phased strategy to unlock the gas and condensate potential of the field, said upstream regulator SKK Migas. The regulator will encourage Kufpec to accelerate efforts and bring the project on stream by the fourth quarter of 2027, said the head of SKK Migas, Djoko Siswanto. The development of the field will include drilling production wells and installing subsea pipelines to transport gas from Anambas to existing facilities in the West Natuna transportation system. Kufpec in 2022 announced the discovery of gas and condensate at the Anambas-2X well in the Anambas block. The Anambas block was awarded to Kufpec Indonesia in 2019 through a bidding process. The company holds a 100pc participating interest in the block and has a 30-year production sharing licence, including a six-year exploration period. The approval of the plan of development marks a step towards the project's final investment decision. It also shows that the upstream oil and gas sector in Indonesia is still attractive to domestic and foreign firms, said Djoko. The field is expected to be able to transport gas to domestic and regional markets, support Indonesia's energy security, and drive economic growth, according to SKK Migas. Indonesia continues to prioritise oil and gas expansion to maintain economic growth. Investment in oil and gas rose from $14.9bn in 2023 to $17.5bn in 2024, according to the country's energy ministry. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Greece’s Alexandroupolis LNG off line until mid-Aug

15/05/25

News

15/05/25

Greece’s Alexandroupolis LNG off line until mid-Aug

London, 15 May (Argus) — Greece's 4.3mn t/yr Alexandroupolis LNG import terminal will remain off line until 15 August, after which it will return to 25pc of capacity for the remainder of the gas year, an updated urgent market message (UMM) from operator Gastrade says. The terminal has been off line since 28 January because of damage to the booster pumps on the floating storage and regasification unit, Gastrade said, and it will remain fully unavailable until 15 August, after which onward regasification services will resume capped at 25pc of maximum capacity, or about 42 GWh/d, with available redundancy for the booster pumps. This availability will be offered for 15 August-30 September only under "certain operational and commercial conditions", Gastrade specified, and several market participants were unsure of what this phrase meant or whether regasification would in fact be possible at all during this period. From the start of the new gas year on 1 October, the 25pc cap will be lifted, but "certain operation constraints may remain for a limited period of time", the operator said. The previous version of the the UMM listed the shutdown end date as 15 May, although Gastrade had already told Argus in April that it did not expect to return to full operations until October . By Brendan A'Hearn Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

SEFE sells only 900GWh of Rehden gas storage space

15/05/25

News

15/05/25

SEFE sells only 900GWh of Rehden gas storage space

London, 15 May (Argus) — German gas storage operator Sefe sold less than a fifth of the capacity on offer at its Rehden site in an auction on Thursday — the first capacity sold at the site for the current storage year. Sefe offered 5TWh and received bids in excess of this, but said it allocated only 900GWh, suggesting most bids were below its reserve price. German THE prices for delivery over the remainder of the summer, including the balance-of-May market, closed €2.08/MWh below the following winter price and €2.18/MWh below the first-quarter 2026 price on Wednesday. The 900GWh was the first allocated space at the site for the current storage year, after one unsuccessful auction in January and one last week. The German government last month halved the mandatory fill level at the site to 45pc by 1 November. Now there is capacity booked, there might be scope for Rehden not to be fully emptied, given that there is still 1.1TWh of gas in the 45TWh site. There is a two-month period during which capacity holders can withdraw their gas after the beginning of the storage year, and withdrawals have continued at the site since 1 April. Sefe said it will publish further details on upcoming auctions for the capacity not yet marketed "in a timely manner". Injections at Rehden would have to start by 17 August to meet the 45pc mandate, according to Argus calculations, factoring in 18.5 days of maintenance in October. Under the previous 90pc mandate, injections would have had to start before the end of May, taking Rehden's injection curve into account. By Till Stehr Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more