Australia’s Woodside Energy announced on Wednesday that it is exploring opportunities for collaboration with Saudi Aramco, which may acquire a stake in its $17.5 billion liquefied natural gas (LNG) project in Louisiana. Following the announcement, shares in Woodside, the country’s top gas producer, surged nearly 4%.

The agreement could also enable Aramco to secure LNG supplies, reflecting the continued interest in the Louisiana LNG project from high-quality potential investors, according to Woodside CEO Meg O’Neill. She emphasized that this partnership demonstrates the project’s attractiveness to significant players in the industry.

In April, Woodside granted final approval for the Louisiana LNG project, confident that a pro-fossil fuel U.S. administration and strong demand would yield competitive returns. The project, which consists of three trains, is expected to produce 16.5 million tonnes of LNG per year, with the first gas anticipated to be delivered in 2029. Additionally, Woodside sold a 40% interest in the company that holds the infrastructure assets for the project to U.S. investor Stonepeak for $5.7 billion.

MST Marquee senior energy analyst Saul Kavonic remarked that a partnership with a “quality partner” like Aramco would validate the project’s value in the market. He noted, “Aramco aren’t doing this just for a few percent of a million tons … when they go into something, they go big.”

Furthermore, both Aramco and Woodside are considering a collaboration in lower-carbon ammonia. Kavonic also anticipates that Woodside will seek additional equity partners from Asia, mentioning that the company has engaged in discussions with potential buyers such as Tokyo Gas and Japan’s JERA.