Woodside clears legal hurdle for $12.5 billion Scarborough project

Woodside’s $12.5 billion Scarborough energy project in Western Australia has all primary environmental approvals in place after the Australian Conservation Foundation (ACF) agreed to dismiss its legal challenge.

According to a statement by Woodside issued on Monday, the duo have agreed to dismiss the ACF’s challenge to a primary environmental approval for Woodside’s Scarborough energy project.

The Federal Court proceedings sought an injunction to stop offshore activities for the project.

The ACF, represented by the Environmental Defenders Office, started the Federal Court of
Australia proceedings in relation to the offshore environmental assessment of the Scarborough project in June 2022.

Woodside said the parties have agreed to seek orders from the Court to dismiss the proceedings.

“Litigation against energy projects like Scarborough is an ineffective way to pursue solutions to global climate and energy challenges. Such approaches create needless uncertainty for businesses, communities and the people who depend on the energy these projects produce,” Woodside CEO Meg O’Neill.

“The Scarborough reservoir contains less than 0.1 percent carbon dioxide and combined with processing design efficiencies will be one of the lowest carbon intensity sources of LNG delivered into north Asian markets,” she said.

First LNG cargo in 2026

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.

Moreover, Woodside’s Scarborough and the second Pluto LNG train projects were 67 percent complete at the end of the second quarter.

Woodside also said that the project’s price tag rose 4 percent to $12.5 billion from $12 billion.

The schedule remains unchanged, with first LNG cargo targeted for 2026.

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