Australia’s Woodside said it has taken a final investment decision on the Scarborough and Pluto LNG Train 2 developments worth about $12 billion.
The approval also includes new domestic gas facilities and modifications to the first Pluto 4.9 mtpa train on Western Australia’s Burrup Peninsula.
Pluto Train 2 will process gas from the Scarborough offshore gas resource and have a capacity of about 5 mtpa.
Woodside recently agreed to sell a 49 percent stake in the second Pluto train to US-based Global Infrastructure Partners. Also, Woodside expects capital expenditure for this development to reach about $5.6 billion.
The train will get gas from the Scarborough gas field, located about 375 km off the coast of Western Australia, through a new trunkline long about 430 km. The field has about 11.1 trillion cubic feet of dry gas, according to Woodside.
Furthermore, the development of Scarborough will include the installation of a floating production unit (FPU) with eight wells drilled in the initial phase and thirteen wells drilled over the life of the field.
As a result of the final investment decision, Greater Scarborough contains 1P undeveloped reserves of 956.6 MMboe, 2P undeveloped reserves of 1,432.7 MMboe and a 2C contingent resource of 165.3 MMboe, Woodside said.
Woodside on a “transformative path”
Woodside says the $12 billion LNG development, out of which $6.9 billion is the company’s share, would deliver “significant cash flow and enduring value” to shareholders.
“Scarborough gas processed through Pluto Train 2 will be one of the lowest carbon intensity sources of LNG delivered to customers in north Asia, with first LNG cargo targeted for 2026,” the firm said.
The Scarborough joint venture comprises Woodside Energy Scarborough (73.5%) but also BHP Petroleum (26.5%).
The Australian LNG player has just announced that it signed a binding merger deal with BHP’s oil and gas business.
Woodside CEO Meg O’Neill said approving the development of the “world-class Scarborough gas resource is a landmark achievement for Woodside.”
“Today’s decisions set Woodside on a transformative path. Scarborough will be a significant contributor to Woodside’s cash flows, the funding of future developments and new energy products, and shareholder returns,” she said.
O’Neill added the approved development has “quality customer support” with about 60% of Scarborough capacity contracted, including domestic gas for the proposed Perdaman urea project.
