Worley Secures Full Approval for Phase 2 of Major US LNG Project
Worley secures full notice to proceed on major US LNG project
Worley Limited (ASX: WOR) has received Full Notice to Proceed from Venture Global for Phase 2 of the CP2 LNG project under a reimbursable engineering, procurement and construction (EPC) contract. The approval follows Venture Global’s Final Investment Decision on 13 March 2026, converting Worley’s preliminary planning services under a Limited Notice to Proceed into committed project execution work.
The CP2 LNG project is a major liquefied natural gas export facility located in Cameron Parish, Louisiana, United States. Worley has been providing EPC services for Phase 1, with on-site construction having commenced in June 2025. The Full Notice to Proceed for Phase 2 marks a significant milestone in the project’s development and provides greater revenue visibility for Worley shareholders.
The reimbursable nature of the EPC contract means Worley will recover project costs plus a fee, reducing execution risk compared to fixed-price arrangements. This structure provides cost certainty whilst allowing the company to scale its delivery capability on one of the largest LNG infrastructure projects currently under development in the United States.
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What is an LNG export facility and why does it matter?
An LNG export facility cools natural gas to approximately -162°C, transforming it into liquid form for efficient transportation via specialised tanker ships to international markets. These facilities represent critical infrastructure in global energy supply chains, enabling natural gas producers to access markets beyond pipeline reach.
The CP2 LNG project operates under a reimbursable EPC contract, meaning Worley provides engineering, procurement and construction services whilst recovering costs plus an agreed fee. This contrasts with fixed-price contracts where the contractor assumes cost overrun risk.
| Term | Definition | Relevance to Worley |
|---|---|---|
| Reimbursable EPC Contract | Engineering, procurement and construction services delivered on a cost-plus-fee basis | Reduces execution risk compared to fixed-price contracts, providing cost certainty |
| Limited Notice to Proceed | Conditional approval to commence preliminary planning and design work | Allowed Worley to begin Phase 2 EPC planning services prior to final investment commitment |
| Full Notice to Proceed | Formal authorisation to execute the complete project scope | Converts preliminary engagement into committed project revenue with improved visibility |
| Final Investment Decision | Client commitment to fund and execute a project following feasibility assessment | Triggers transition from planning to full-scale execution, securing Worley’s project participation |
Understanding these project milestones helps investors assess how preliminary contract wins convert into committed revenue streams. The progression from Limited to Full Notice to Proceed represents a critical inflection point where project planning transitions to active construction and delivery.
Strategic positioning in global LNG markets
Worley’s leadership in LNG infrastructure delivery positions the company to capitalise on growing demand for natural gas export capacity. The CP2 LNG project represents one of the most significant LNG developments globally, with the company serving as Venture Global’s project delivery partner across both Phase 1 and Phase 2.
Chris Ashton, Chief Executive Officer
“This is one of the most significant and strategically important LNG projects globally and we’re proud to work with Venture Global as their project delivery partner. This project leverages our extensive expertise in LNG and builds on our capability to deliver complex, large-scale projects.”
The company has identified LNG as a priority market where it holds an established leadership position and can scale execution capability. Securing repeat work with major clients like Venture Global demonstrates Worley’s competitive positioning in a sector requiring specialised technical expertise and proven delivery track records.
Worley’s reimbursable contract structure on the CP2 LNG project allows the company to deliver services whilst managing execution risk, a key consideration when undertaking large-scale, multi-year infrastructure projects.
Project timeline and milestones
Worley’s involvement with the CP2 project has progressed through several key milestones since initial engagement:
- 10 May 2023: Initial ASX announcement regarding CP2 project engagement
- 16 June 2025: Phase 1 on-site construction commenced
- 30 July 2025: Further project update released to market
- 4 February 2026: Recent project update provided to shareholders
- 13 March 2026: Venture Global reached Final Investment Decision; Full Notice to Proceed issued for Phase 2
This timeline reflects the extended development cycle typical of major LNG infrastructure projects, where preliminary planning and engineering precede full-scale construction mobilisation by 12 to 24 months.
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Investment implications for Worley shareholders
The Full Notice to Proceed for Phase 2 of the CP2 LNG project provides several key considerations for investors assessing Worley’s project pipeline and near-term revenue outlook.
The conversion from Limited to Full Notice to Proceed signals committed project revenue, moving from preliminary planning services to full EPC execution. This transition improves visibility on project activity and allows Worley to scale its delivery teams and supply chain engagement across the Louisiana facility.
The reimbursable contract structure reduces fixed-price execution risk, a critical factor when evaluating multi-year infrastructure projects subject to labour, material and regulatory variables. Under this model, Worley recovers project costs plus a fee, providing cost certainty whilst maintaining margin stability.
LNG remains a priority growth market for Worley, with the company holding an established leadership position in engineering and construction services for liquefied natural gas facilities globally. The CP2 LNG project reinforces this strategic focus, demonstrating the company’s capability to secure repeat work with major clients.
Key takeaways for investors include:
- Conversion from Limited to Full Notice to Proceed signals committed project revenue with improved near-term visibility
- Reimbursable contract structure reduces fixed-price execution risk whilst maintaining margin certainty
- LNG identified as priority market where Worley can scale execution capability
- Demonstrates capability to secure repeat work with major clients, positioning the company for additional contract opportunities in a growing sector
The CP2 LNG project represents one of the most significant LNG developments globally, with Worley serving as the primary EPC contractor across both phases. This positions the company within a critical segment of global energy infrastructure delivery as natural gas export capacity expands to meet international demand.
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