Key facts
- Woodside Energy projects a 50% rise in oil and gas sales by 2032.
- Annual sales are expected to reach 300 million barrels of oil equivalent.
- Net operating cash flow is forecast to increase to $9 billion by 2032.
- LNG capacity is set to nearly double to 40 million tons annually by 2032.
- Key growth projects include the Scarborough LNG facility and the Louisiana LNG plant.
- The Trion oil field in Mexico is expected to boost oil production.
Woodside Energy, Australia's largest independent energy company, has outlined ambitious growth plans, projecting a 50% increase in its oil and gas sales by 2032. This expansion is driven by anticipated global energy demand, particularly in Asia, and bolstered by investments in key projects across the US and Australia.
CEO Meg O’Neill stated that sales are expected to climb to 300 million barrels of oil equivalent per year by 2032, up from 203.5 million boe in 2024, representing a 6% annual growth rate. This increase is projected to drive net operating cash flow up by 6% annually to $9 billion by 2032, from $5.8 billion in 2024. The company also aims to lift dividends by at least 50%.
Growth in liquefied natural gas (LNG) is a central pillar of Woodside's strategy. The company expects its LNG capacity to nearly double from 19 million tons annually in 2024 to 40 million tons in 2032. Key projects contributing to this expansion include the Scarborough LNG facility in Western Australia, expected to commence production in 2026 and add 8 million tons of annual capacity, and the Louisiana LNG plant in the US, which is planned to add 16.5 million tons in capacity between 2029 and 2031. The ultimate capacity of the Louisiana plant could reach 27.6 million tons annually.
In the crude oil sector, Woodside anticipates a significant boost from the Trion field in Mexican waters, with production scheduled to begin in 2028. Woodside holds a 60% stake in the $7.2 billion project, which is expected to add 100,000 barrels of daily production. This field was discovered in 2012, with Woodside partnering with Mexico's Pemex since 2017.
Despite forecasts of a potential LNG supply glut in the coming years, O’Neill expressed confidence in Woodside's ability to absorb incremental supply, citing the market's elasticity and the company's secured long-term offtake agreements with customers through 2030. She noted that customers would not sign such agreements if they anticipated an oversupplied market.
Fossil fuels are expected to constitute approximately 90% of Woodside's earnings into the 2030s, with gas playing a crucial role as a transition fuel. While the company has scaled back some clean energy projects due to commercial viability concerns, it maintains a focus on ammonia as a future energy source. Woodside sees significant potential for increased gas sales in Southeast Asia and China, aligning with forecasts of a 60% growth in global LNG demand by 2035.