(Reuters) -U.S.-based gas pipeline operator Williams will invest $1.9 billion in Woodside Energy's $17.5 billion liquefied natural gas production and export terminal under construction in Louisiana, the companies said.
Under the agreement, Williams will own a 10% stake in the project's infrastructure company and 80% of the Driftwood pipeline that will supply natural gas to the Louisiana LNG project.
Woodside's ownership of the Louisiana LNG project will be reduced to 50%, as the Australian energy company
sold a 40% stake to U.S. investor Stonepeak for $5.7 billion in April.
Woodside said it expected total proceeds of $378 million from the latest deal, cutting its total capital spending on the project to $9.9 billion from a previous estimate of $11.8 billion.
Shares in the Australian company gained as much as 4.1% to A$24.11 in Sydney on Thursday, hitting their highest level since September 17.
Williams will receive a 1.5 million metric tons per annum (mtpa) share of production from Louisiana LNG as well as 10% of a 1 mtpa offtake deal Woodside previously signed with Uniper, the companies said.
U.S. President Donald Trump's administration has looked to boost oil and gas production and exports. Since Trump returned to office in January, more than 65 mtpa of additional U.S. LNG capacity has gotten the financial go-ahead.
Louisiana LNG, which is expected to have a capacity of 16.5 mtpa when it produces first LNG in 2029, was the first export project to get to a final investment decision in the U.S. in 2025.
Trump has urged trade partners to boost imports of American energy and has issued a flurry of executive orders to accelerate domestic oil and gas production.
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Shreya Biswas, Maju Samuel and Jamie Freed)
