Woodside Energy Group Ltd (ASX: WDS) shares are falling on Thursday.

In morning trade, the energy giant's shares are down 1.5% to $24.52.

Why are Woodside shares falling?

The company's shares are falling today after a pullback in oil prices overnight offset the release of an announcement this morning.

In respect to the latter, Woodside revealed that it has signed a revised lump sum turnkey engineering, procurement, and construction (EPC) contract with Bechtel for the development of the three train 16.5 million tonnes per annum foundation development of Louisiana LNG.

Louisiana LNG is an under-construction, pre-final investment decision, LNG production facility and export terminal in Calcasieu Parish, Louisiana in the United States.

The company notes that it is a high-quality, scalable development opportunity, with a total permitted capacity of 27.6 million tonnes per annum.

Management believes it represents a major growth opportunity that would expand Woodside's US LNG position, enabling the company to better serve global customers and capture marketing optimisation opportunities across the Atlantic and Pacific Basins.

'An important step'

According to the release, Bechtel has worked on site since the acquisition of the project and will continue work under a limited notice to proceed (LNTP) executed under the revised EPC contract.

The LNTP provides for continued site construction and commitment to certain key materials and services required for the foundation project.

Woodside's CEO, Meg O'Neill, believes the signing of the EPC contract and continuation of engineering and construction activities represents "an important step" in the development of Louisiana LNG.

Commenting on the news, O'Neill said:

Louisiana LNG is positioned to provide LNG into the growing global market and generate value for shareholders in accordance with our capital allocation framework. We continue to move at pace. In a short period of time, we have completed the acquisition, secured competitive revised EPC pricing that covers all three trains, and opened the data room with strong interest from potential project partners.

Louisiana LNG is an advantaged project that is fully permitted and has Bechtel as the EPC contractor. The competitive pricing and schedule certainty we have now secured compounds this advantage in the current uncertain market environment for competing projects.

What's next?

Woodside advised that it continues to target final investment decision readiness from the first quarter of 2025.

Total Louisiana LNG expenditure from December to the end of the first quarter of 2025 is forecast to be up to US$1.3 billion. This is included in the overall estimated cost for the foundation development.