Woodside said it has launched the sell-down process for the second train at its Pluto LNG export facility on Western Australia’s Burrup Peninsula.
Pluto Train 2 would process gas from the Scarborough gas resource and have a capacity of about 5 million tonnes per annum.
“We have launched the formal sell-down process for up to 49% of our equity in Pluto Train 2,” Woodside acting CEO Meg O’Neill said in the company’s second-quarter report.
“In parallel, we have commenced a process to test the market for value-accretive opportunities to reduce our equity in the Scarborough resource,” O’Neill said.
Pluto LNG currently processes gas from the offshore Pluto and Xena gas fields in Western Australia. Gas arrives through a 180 km trunkline to a single onshore 4.9 mtpa LNG processing train.
Woodside is the operator of Pluto LNG via Woodside Burrup (90%), while the other partners include Kansai Electric Power Australia (5%) and Tokyo Gas Pluto (5%).
The partners plan to develop the Scarborough gas resource through new offshore facilities connected by an approximately 430 km pipeline to a proposed expansion of the existing Pluto LNG onshore facility.
Furthermore, the expansion includes modifications to the existing Train 1 and construction of the second gas processing train and additional domestic gas infrastructure.
Scarborough gas would primarily go to Train 2 for liquefaction and contains “negligible reservoir carbon dioxide,” Woodside said.
Woodside confirmed it still plans to take a final investment decision for Scarborough and Pluto Train 2 in the second half of 2021.
The projects could cost up to $11 billion.
“We are reviewing project cost estimates following extensive engagement with our contractors over recent months in the lead up to the investment decision,” O’Neill said.