Woodside Energy Group (ASX:WDS): LNG Recovery and Major Project Milestones Shape Operations

Sonal Goyal

02 November 2026 10:59 PM AEDT

Woodside Energy Group (ASX:WDS): LNG Recovery and Major Project Milestones Shape Operations

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Highlights

Q3 2026 production rose 12% QoQ to 46.2 MMboe.
Quarterly Operating Revenue reached USD 4,281 million, up 2% QoQ.
The realised LNG price increased 27% QoQ to USD 84/boe.
Scarborough was 99% complete at September quarter-end.
Full-year production guidance narrowed to 174–181 MMboe.

Woodside Energy Group produces and supplies oil and Natural Gas through an international portfolio of producing Assets and energy developments. Its operations include LNG processing in Australia alongside oil and gas activities in other regions. Woodside Energy Group (ASX:WDS) reported increased production during the third quarter of 2026 following maintenance at Pluto LNG, while progressing construction at Scarborough, Trion and Louisiana LNG. Its latest Quarterly Report separates the near-term contribution of established facilities from projects that have not yet commenced commercial supply.

September-Quarter Production and Revenue

Woodside Energy Group (ASX:WDS) recorded quarterly production of 46.2 million barrels of oil equivalent (MMboe), up 12% from 41.3 MMboe in Q2 2026. Average daily production was 503 thousand barrels of oil equivalent. Woodside attributed the increase primarily to higher output at Pluto LNG following turnaround and maintenance completed during the June quarter.

Operating revenue was USD 4,281 million, compared with USD 4,185 million in the previous quarter, a 2% sequential increase. Woodside reported a realised LNG price of USD 84 per barrel of oil equivalent, rising 27% QoQ. According to the company, pricing lags, LNG portfolio optimisation and higher gas hub pricing contributed to this movement. Lower average realised pricing in the liquids portfolio partly offset LNG-related benefits.

The company reported operational reliability above 99% at Sangomar, the North West Shelf LNG project and Pluto LNG. Woodside Energy Group (ASX:WDS) also completed a planned major turnaround on a North West Shelf LNG train within the reported schedule and budget. These operational measures provide context beyond the revenue figure because Commodity prices, production volumes and reliability can move independently.

Scarborough Approaches Initial LNG Supply

At the end of September 2026, the Scarborough Energy Project was 99% complete. Woodside maintained that the project was on budget and targeting its first LNG cargo during 2026. The construction completion percentage is an engineering milestone rather than confirmation of an initial commercial cargo. Final commissioning, start-up testing and shipping arrangements remain distinct steps in bringing a Facility into service.

The Trion Project in Mexico was 71% complete at quarter-end, with floating production unit fabrication 96% complete. Management continued to target first oil in 2028. Louisiana LNG was 32% complete overall, with Train 1 at 41% completion and first LNG targeted for 2029. Woodside Energy Group (ASX:WDS) therefore has developments at different stages, meaning future operating contributions depend on separate construction and commissioning timetables.

Production Guidance and Portfolio Management

Woodside Energy Group (ASX:WDS) narrowed full-year 2026 production guidance to 174–181 MMboe from 174–185 MMboe. Capital Expenditure guidance was unchanged at USD 4,000–4,500 million. The report identified several factors behind the narrower production range, including the timing of Scarborough’s first LNG cargo and adjustments involving other production assets. Guidance describes management expectations, not a guarantee of volumes ultimately produced.

The company also entered into an agreement to sell its 70% operated interest in the Calypso Project. Separately, it completed a strategic review of Beaumont New Ammonia and indicated it would initiate a process to reduce its investment.

Project commissioning delays, equipment availability, expenditure pressures and changes in realised energy prices remain operating considerations. Woodside Energy Group (ASX:WDS) must also manage different regulatory and contractual requirements across international jurisdictions. The quarterly update provides measurable project progress without establishing the profitability or operating performance of projects yet to commence production.

Key Insights

Woodside Energy Group (ASX:WDS) reported higher sequential output and revenue in Q3 2026, supported by improved Pluto LNG availability and LNG pricing. Scarborough’s advanced construction status and progress at Trion and Louisiana LNG describe a multi-year project pipeline. The updated annual production guidance and unchanged expenditure range provide the company’s current planning framework while leaving completion and commercial outcomes dependent on execution.

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