-- (Adds Woodside's comments)
Australia-based Woodside Energy (WDS) is struggling to secure buyers for its planned Louisiana LNG export facility, Reuters reported Thursday.
The primary obstacle is the company's insistence on liquefaction fees, the cost added to the base price of gas to process it for transport, that exceed current US market averages, according to the report.
While these fees have risen globally due to labor shortages and construction costs, Woodside's high entry point may have identified a pricing ceiling for US LNG exports, it said.
As per the report Woodside initially sought fees exceeding $2.80 per million British Thermal Units, significantly higher than the typical US range of $2.40 to $2.50.
For comparison, industry leader Cheniere Energy (LNG) charges about $2.60, while Venture Global (VG) sits at the lower end at roughly $2.30.
"As publicly announced, approximately 10.5 mtpa of Louisiana LNG capacity has been committed. This includes Woodside's intention to take around 8 mtpa into its global LNG portfolio, a 1.0 mtpa FOB LNG sale and purchase agreement with Uniper, and equity aligned offtake obligations equivalent to around 1.5 mtpa to Williams," a Woodside spokesperson said in an email to.
"Woodside is confident in the contracting momentum at Louisiana LNG and will continue to provide updates through its normal market disclosures," the spokesperson said.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)