Woodside Energy Group (ASX:WDS,NYSE:WDS,LSE:WDS) has completed its acquisition of US-based Tellurian, including the US Gulf Coast Driftwood liquefied natural gas (LNG) development opportunity.

The transaction amounted to about AU$900 million in cash, or AU$1 per share.

“This is a major growth opportunity that significantly expands our US LNG position, enabling us to better serve global customers and capture further marketing optimisation opportunities across both the Atlantic and Pacific Basins,” Woodside CEO Meg O’Neill said in the company’s October 9 release.

Woodside has now changed the name of the fully permitted Driftwood asset to Woodside Louisiana LNG.

The company said the project represents a major growth opportunity for its portfolio, with inbound communications already received from multiple parties looking to collaborate as strategic partners.

“After careful consideration of Tellurian’s opportunities and challenges, the board and senior management weighed an immediate and significant cash return against the risks and costs associated with the timeline to (final investment decision) and determined that this offer is in our shareholders’ best interest,” Tellurian Executive Chairman Martin Houston said in mid-July, when the deal was first announced to the public.

“Woodside is a highly credible operator, with better access to financial resources and a greater ability to manage offtake risk, and I am confident it is the right developer to take Driftwood forward,’ he added.

Woodside Louisiana LNG is an LNG production and export terminal located in Calcasieu Parish, Louisiana. It is currently under construction and is pending a final investment decision.

Its total permitted capacity stands at 27.6 million tonnes per annum (mtpa), with four phases of development planned. Phase 1 will involve 11 mtpa, while Phase 2 will entail 5.5 million mtpa.

A final investment decision for Phase 1 is set for after the first quarter of 2025. The company and its engineering, procurement and construction contractor Bechtel have already completed substantial work to get to this stage.

Woodside is also looking to curb net equity Scope 1 and 2 emissions by 2030 and reaching net zero by 2050.

Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.