Woodside’s Scarborough and second Pluto LNG train project 38 percent complete

Woodside reported lower sales revenue in the second quarter, while its Scarborough and Pluto LNG Train 2 project, worth about $12 billion, is now 38 percent complete.

In November 2021, Woodside took a final investment decision on the Scarborough and Pluto LNG Train 2 developments.

The projects also include 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 engineer Bechtel started building the second Pluto train last year.

Pluto Train 2 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.

Woodside expects to ship first LNG cargo in 2026.

The company’s CEO Meg O’Neill said in the second-quarter results report on Wednesday that the Scarborough and Pluto Train 2 project “continued to make good progress” and is now 38 percent complete.

Also, fabrication of both the topsides and hull of the floating production unit has ramped up.

“The accommodation village in Karratha, which will service the Pluto Train 2 construction workforce, is now complete,” she said, adding that Pluto Train 2 module fabrication and foundation site works “is progressing well”.

Sales revenue down

Woodside said its second-quarter sales revenue dropped by 10 percent year-on-year to $3.08 billion, while it decreased by 29 percent when compared to the prior quarter.

The LNG producer attributed this decrease to lower realized prices and lower production.

Woodside achieved a portfolio average realized price of $63/boe

Quarterly production of 44.5 MMboe (489 Mboe/day) was down 5 percent from the first quarter due to planned turnaround and maintenance activities, it said.

O’Neill said that planned turnaround and maintenance activities particularly at Pluto LNG and associated offshore facilities in Western Australia have impacted “strong” underlying operational performance in the second quarter.

Woodside restarted Pluto LNG production in June.

“Whilst production and sales were lower compared with the first quarter of 2023, they were higher than the corresponding period last year, reflecting Woodside’s expanded operations portfolio,” she said.

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