Woodside lining up carriers for US LNG project

WOODSIDE has no plans to own its own LNG carriers to support its US$I7.5 billion investment in its Louisiana LNG project, opting instead to investigate leasing options.

Oslo-based shipping publication TradeWinds this week reported Woodside is sounding out shipyards for 16-20 vessels that will be required to service Louisiana LNG from 2029-30. But as is now the norm for most such projects, Woodside will not own the assets.

Responding to an investor question during Woodside’s half-year investor call, Woodside CEO Meg O’Neil said philosophically the company believed there are other companies that were well equipped and well-suited to own LNG carriers.

“When we started up North West Shelf, there were some project-owned vessels, but we've moved away from that and that's probably the industry standard to use leased vessels,” Ms O’Neil said.

“The number of vessels, the balance sheet exposure is something that we're working through as we speak, so too early to advise, but as we progress that work and progress those contracts, we will certainly keep the market updated.”

An industry insider told Daily Cargo News that what would happen in these situations is that the oil/gas/refinery company will know it has product to sell and will want to keep control of the shipping side of that, but as Ms O’Neil says, won't want to own the assets.

“So it will sound out shipyards for building slots – three to four years out, given availabilities - and then put the ships 'out-to-market' by issuing Request for Tenders to seek offers from owners/investors/financiers,” the insider said.

“Whover offers the best lease deal - and is an absolute A grade operator - will get the business.”

There are currently seven Woodside-named LNG carriers on the water and another three due for delivery this year and next (some of which will likely replace older units), but none are owned by Woodside: five of those in service by Greece's Maran, one by SeaPeak of UK, and one by Hyundai Glovis.

They are mostly named after Woodside chairmen, so Woodside Goode, Woodside Chaney, Woodside Charles Allan, Woodside Donaldson and so on. An exception is 2024’s Woodside Scarlet Ibis.

Woodside Jirrubakura is currently undergoing sea trials from Okpo, South Korea and will be followed this year by Woodside Barrumbara, with both owned by Greece’s GasLog. Due in 2026 is Woodside MilinykuraI, also owned by Maran Gas Maritime.