The Australian energy company is scaling back some lower-carbon ambitions while increasing its focus on natural gas, LNG, and major production projects
Perth, Australia, 6 October 2026 – Woodside Energy is changing the balance of its growth strategy, putting greater emphasis on oil and liquefied natural gas while reducing some of its planned investment in lower-carbon businesses. The decision comes as the company reviews where it can generate the strongest returns from its capital and responds to changing demand for different forms of energy.
Woodside, Australia’s largest oil and gas producer, announced the shift alongside its 2026 half year results. The company plans to target about $350 million in annual cost savings from 2028, with part of those savings expected to come from reducing investment in lower carbon projects. It has also withdrawn its previous plan to spend $5 billion on clean energy projects by 2030 and is reviewing its Beaumont New Ammonia Project in Texas.
The change marks a notable adjustment for a company that has spent recent years building a broader portfolio that included oil, gas, and new energy opportunities. Woodside said its investment decisions will now be assessed on an equal basis, with capital directed toward projects that can demonstrate a stronger commercial case. The company has also said that customer demand and the pace of policy development have influenced its approach to lower carbon investments.
At the same time, LNG remains central to Woodside’s plans. The company sees natural gas as an important part of meeting long term energy demand and supporting customers during the energy transition. Its existing growth pipeline includes major projects in Australia, Mexico, and the United States, giving LNG and oil a significant role in its production outlook for the coming years.
One of the company’s most closely watched projects is the Scarborough Energy Project in Western Australia. Woodside reported that the project was 98 percent complete at the end of the first half of 2026, with the first LNG cargo expected in the fourth quarter. The project is designed to provide additional gas production and LNG supply as Woodside expands its portfolio.
Woodside is also advancing Louisiana LNG on the U.S. Gulf Coast. The project, located in Calcasieu Parish, Louisiana, is under construction and has a permitted capacity of 27.6 million tonnes per year. Woodside puts the investment at approximately $17.5 billion and is targeting the first LNG cargo in 2029. Construction includes LNG storage tanks and three LNG production trains.
The company’s financial performance has provided additional room for this strategy. Woodside reported first half net profit after tax of about $1.67 billion, a 27 percent increase from the same period in 2025. Revenue also increased during the period, while production declined because of natural field decline, maintenance, weather impacts, and portfolio changes.
The shift does not mean Woodside has abandoned its environmental goals entirely. The company continues to target a 30 percent reduction in net equity Scope 1 and Scope 2 greenhouse gas emissions by 2030 and maintains an aspiration of net zero by 2050 or sooner. Its current strategy combines emissions reduction efforts with investment in products and services linked to the energy transition.
Woodside’s latest direction reflects a broader question facing energy companies: how to balance today’s demand for reliable energy with longer term changes in the global energy system. For Woodside, LNG and oil remain the core of its near term growth plans, while lower carbon opportunities will face closer commercial scrutiny. With major projects moving toward production, the company is now positioning itself to capture demand for natural gas while keeping selected energy transition opportunities under review.
