Woodside pushes back major LNG projects

Woodside is postponing final investment decisions for its three LNG growth projects worth more than $50 billion in a response to the oil price crash and the Covid-19 pandemic.

The projects in question include Scarborough, Pluto Train 2 and Browse LNG.

The Australian company announced a number of measures on Friday including a 50 percent reduction in spending for 2020.

The current uncertain global investment environment arising from the spread of Covid-19, combined with oversupply of crude oil and LNG, has led to significant decline in prices.

This requires a “decisive and swift action,” Woodside said.

The company will reduce spending to about $2.4 billion and about $100 million in operational spending.

As part of the measuers, Woodisde aims to reduce investments for about 60 percent to $1.7 – 1.9 billion.

Besides delaying final decisions on its large LNG growth projects to 2021, Woodside will also postpone other activities.

These include most proposed exploration activities, reducing overall exploration expenditure by about 50 percent to $75 million.

Woodside said it would continue finalizing commercial deals and regulatory approvals for Scarborough, Pluto Train 2 and Browse.

The company also noted that there would be some ongoing engineering work in preparation for a FID on these projects.

The Covid-19 pandemic has affected the entire industry.

Woodside CEO Peter Coleman said all steps were being taken to “protect the wellbeing of those who work for and with the company”.

“These are extraordinary times, that no one could have foreseen,” he said.

But Woodside enters this period of uncertainty with one of the “stronger balance sheets” in the industry and low-cost producing assets, which are resilient to commodity price fluctuations, Coleman said.

- Advertisements -

Most Popular

VesselsValue: Japan has the world’s most valuable LNG fleet

Japan owns the world’s most valuable fleet of liquefied natural gas (LNG) carriers, followed by Greece and South Korea,...

Four firms plan to liquefy e-methane at Cameron LNG and ship it to Japan

Japan's Tokyo Gas, Osaka Gas, Toho Gas, and Mitsubishi have revealed plans to produce synthetic methane or e-methane in...

LNG freight rates drop below $300,000 per day

Spot charter rates for the global LNG carrier fleet are continuing to decline in both basins and now they...

More News Like This

Australia’s Woodside to consider sending Sunrise gas to LNG plant in East Timor

Australian LNG player Woodside is willing to consider sending natural gas from the Greater Sunrise field to be liquefied...

Woodside plans major Pluto LNG turnaround next year

Australian LNG player Woodside is planning to shut its Pluto LNG terminal in the Pilbara region of Western Australia...

Woodside delivers Australian LNG cargo to Germany’s Uniper via Dutch Gate terminal

LNG player Woodside said it had delivered an LNG cargo from its North West Shelf project in Australia to...

Woodside pens LNG cooperation deal with Japan’s JBIC

Australian LNG producer Woodside said it had signed a deal with the Japan Bank for International Cooperation (JBIC) aimed...