Australian energy giant Woodside is edging closer to approving a huge liquefied gas project in the United States, even as oil and gas prices plunge on fears that Donald Trump’s tariff war will unleash economic turmoil and crush demand for fuel.
Woodside, the largest Australian oil and gas company, signed a deal on Monday to sell a 40 per cent stake in its proposed Louisiana liquefied natural gas (LNG) export terminal on the Gulf of Mexico in return for $US5.7 billion ($9.5 billion) to help fund the project’s cost.
Woodside’s Louisiana LNG site.Credit: Martin Vargas/Getty Images for Bechtel
The deal, with New York-based investor Stonepeak, would now enable Woodside to “progress at pace” to a final investment decision on the terminal, chief executive Meg O’Neill said. If the project proceeds, it could one day deliver more than double the current LNG export volumes of Woodside’s vast Australian assets.
“This transaction further confirms Louisiana LNG’s position as a globally attractive investment,” O’Neill said.
However, news of the deal came just as Woodside, Santos and other oil and gas producers were hit by a major investor sell-off, wiping billions of dollars off the value of their shares, after the price of oil sank to a four-year low.
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The benchmark Brent oil price fell more than 10 per cent last week, before sliding further on Monday to as low as $US63 a barrel, a level not seen since COVID-19 shutdowns of 2021 wiped out demand for petrol, diesel and jet fuel.
Oil and gas prices were coming under “severe pressure”, analysts said, after the Trump administration imposed sweeping tariffs that were far steeper than many had been expecting and raised the threat of an all-out trade war curbing global economic growth. That pressure has been compounded by a surprise move by the Saudi Arabia-led oil producers’ cartel to increase output next month.
Falling oil prices are bringing welcome news for consumers: cheaper prices at the bowser for petrol and diesel, both of which are refined from crude oil and now cost less to produce. Last week, the national average price of unleaded was $1.79 a litre, the lowest it’s been all year.
