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The Perth-based LNG player, which just completed its acquisition of US LNG developer Tellurian, said in its third-quarter report that the Scarborough project remains on track for first LNG cargo in 2026.
The project was 67 percent complete at the end of the second quarter, and Woodside revised total project cost estimate to $12.5 billion ($8.2 billion Woodside share), a 4 percent increase from the previous cost estimate at FID of $12 billion.
Woodside and Saipem recently completed the installation of the project’s trunkline.
When operational, the 433 km trunkline will transport gas from the offshore Scarborough field to the onshore Pluto LNG processing facility in Karratha.
In November 2021, Woodside took a final investment decision on the Scarborough and Pluto LNG Train 2 developments.
The project also includes new domestic gas facilities and modifications to the first train.
Woodside’s Pluto LNG terminal currently has one train with a capacity of 4.9 mtpa and Woodside and US engineering and construction firm Bechtel started building the second Pluto train in 2022.
41 modules delivered
In February, Woodside received the first three of 51 modules from Indonesia at the Pluto Train 2 project site in Western Australia.
Woodside said in the report that 41 Pluto Train 2 modules have been delivered to the site, with 39 modules set in position at the end of the quarter and site works continuing to ramp up.
Also, the company said that first steel was cut at the module yard on the Pluto Train 1 modifications project and site preparation works at the Pluto LNG facility started.
According to Woodside, fabrication of the floating production unit (FPU) hull and topsides progressed, with installation of piping, electrical, and instrumentation packages continuing on the topsides and the hull entering its second dry dock in preparation for FPU integration activities in 2025.
Woodside said the drilling program continued with batch drilling of the development wells ongoing.
Higher revenue and record production
Woodside reported higher revenue and production in the third quarter of this year compared to the same period in 2023.
The company said its sales revenue rose 13 percent year-on-year to $3.68 billion, and it rose 21 percent compared to $3.03 billion in the prior quarter.
Woodside said revenue rose compared to the prior quarter primarily due to Sangomar cargo sales and higher average LNG prices.
The company reported record quarterly production of 53.1 MMboe (577 Mboe/day), up 20 percent from the prior quarter due to ramp-up of Sangomar, increased uptime across operated assets including 99.9 percent LNG reliability at Pluto and increased seasonal domestic gas demand.
Production rose 11 percent compared to the third quarter in 2023.
Full-year production guidance has been narrowed to 189–195 MMboe.
Average LNG price climbs
Woodside said its average LNG produced price reached $10.8 per MMBtu in the third quarter, up compared to $9.6 per MMBtu in the prior quarter and $10.3 per MMBtu in the same quarter in 2023.
These realized prices include the impact of periodic adjustments reflecting the arrangements governing Wheatstone LNG sales, the firm said.
LNG traded price, which excludes any additional benefit attributed to produced LNG through third-party trading activities, was at $11.2 per MMBtu in the third quarter.
This compares with $9.1 per MMBtu in the second quarter and $8.2 per MMBtu in the same quarter last year.
Woodside capitalized on increased gas-hub prices by selling 39 percent of produced LNG cargoes in the quarter on prices linked to gas hub indices.
Full-year gas hub guidance has been increased to 33–37 percent of produced LNG.
London listing
Woodside said in a separate statement it has reviewed its current listing structure and decided to delist from the London Stock Exchange (LSE).
The company’s shares represented by depositary interests account for about 1 percent of Woodside’s issued share capital.
“Trading volumes of Woodside shares on the LSE are low and delisting from the LSE will reduce Woodside’s administration costs,” it said.
The last day of trading of Woodside shares on the LSE will be November 19, 2024.
Woodside added its primary listing on the Australian Securities Exchange (ASX) and its American Depositary Receipts (ADR) program on the New York Stock Exchange (NYSE) will not be affected by the delisting of its shares from the LSE.