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The Perth-based LNG player said in its fourth-quarter report that the Scarborough project remains on track for first LNG cargo in 2026.
The project was 73 percent complete at the end of the third quarter, while Woodside also 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 completed the installation of the project’s trunkline in October last year.
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.
Last month, Woodside received the final modules from Indonesia at the Pluto Train 2 project site in Western Australia.
Higher revenue and production
Woodside reported higher revenue and production in the fourth quarter of last year compared to the same period in 2023.
The company said its sales revenue rose 3 percent year-on-year to $3.47 billion, but it dropped 6 percent compared to $3.68 billion in the prior quarter.
Woodside said revenue dropped compared to the prior quarter primarily due to lower seasonal demand at Bass Strait, partly offset by higher third-party LNG trades.
The company reported quarterly production of 51.4 MMboe (559 Mboe/day), up 7 percent compared to the same quarter in 2023.
Woodside said production dropped 3 percent from the prior quarter due to lower seasonal demand at Bass Strait and an unplanned shutdown at Pluto LNG, partly offset by increased production at Sangomar.
Average LNG price
Woodside said its average LNG produced price reached $10.8 per MMBtu in the fourth quarter, which was flat compared to the prior quarter but lower compared to $11.5 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 $12.6 per MMBtu in the fourth quarter.
This compares with $11.2 per MMBtu in the third quarter and $11.9 per MMBtu in the same quarter last year.
Woodside sold 33.6 percent of produced LNG at prices linked to gas hub indices in the quarter (34.4 percent full-year 2024), realising a 31 percent premium compared to oil-linked pricing.
This represents 12.8 percent of Woodside’s total equity production in the quarter (15 percent full-year 2024), the company said.
Also, Woodside achieved record quantity of trucked LNG deliveries of approximately 556 TJ, equivalent to 540 trailers, to customers in northern Western Australia.
Louisiana LNG talks
Woodside also provided a small update on its Louisiana LNG export project.
“We continued to move at pace on our recently acquired Louisiana LNG development, signing an engineering, procurement, and construction contract with Bechtel to support final investment decision readiness from the first quarter of 2025,” Woodside CEO Meg O’Neill said.
“We also progressed the sell-down process, which has attracted strong interest from high-quality potential partners. It is encouraging to see the growing level of support for LNG opportunities in the US from capital markets, including the recognition of the potential additional value unlocked by strong marketing capabilities,” she said.
In October 2024, Woodside acquired all issued and outstanding Tellurian common stock for about $900 million cash, or $1.00 per share. The implied enterprise value is about $1.2 billion.
Woodside also renamed Tellurian’s Driftwood LNG project Woodside Louisiana LNG.
Last month, Woodside signed the revised EPC contract with US engineering and construction firm Bechtel for the Louisiana LNG export project.
The lump sum turnkey deal is for the three-train 16.5 million tonnes per annum foundation development of Louisiana LNG.
Woodside said total Louisiana LNG expenditure from December 2024 to the end of the first quarter of 2025 is forecast to be up to $1.3 billion, which is included in the overall estimated cost for the foundation development.