Woodside’s Scarborough and the second Pluto LNG train projects were 62 percent complete at the end of the first quarter and the Australian LNG player remains “on target” to ship the first LNG cargo in 2026, according to CEO Meg O’Neill.
Announcing Woodside’s first quarter results, O’Neill said that two flowlines were installed at the Scarborough offshore field and drilling of the initial wells commenced during the period.
According to Woodside’s quarterly report, the third flowline was installed subsequent to the quarter.
The firm also said that the first subsea tree was successfully installed while trunkline installation was delayed this quarter due to a “buckling incident and weather conditions”.
“Trunkline remediation works from the incident have been completed and installation has recommenced,” it said.
13 modules in place
In February, Woodside received the first three modules from Indonesia at the Pluto Train 2 project site in Western Australia.
O’Neill said that 13 modules were in place at the end of the quarter.
During the quarter, Woodside completed the sale of a 10 percent non-operated interest in the Scarborough project to LNG Japan and entered into an agreement with Jera for the sale of a further 15.1 percent of the Scarborough joint venture, the CEO noted.
In November 2021, Woodside took a final investment decision on the Scarborough and Pluto LNG Train 2 developments and the project was 55 percent complete as of the end of the fourth quarter last year.
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.
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.
Lower revenue and production
Woodside reported lower revenue and production in the first quarter of this year compared to the same period in 2023.
Woodside said its sales revenue dropped 31 percent year-on-year to $2.96 billion, and it dropped 12 percent compared to $3.35 billion in the prior quarter primarily due to a mix of lower realized prices and lower volumes.
The Perth-based firm, which is a top 10 global independent energy company by hydrocarbon production after the completion of the merger with BHP’s oil and gas business, reported sales volume of 45.9 MMboe.
This compares to 49.5 MMboe in the prior quarter and 50.4 MMboe in the corresponding quarter.
In addition, production of 44.9 MMboe dropped 4 percent year-on-year and it was down 7 percent compared to 48.1 MMboe in the prior quarter.
Woodside said its average LNG produced price reached $10.4 per MMBtu in the the first quarter, down compared to $11.5 per MMBtu in the prior quarter and $16.7 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 $9.1 per MMBtu in the first quarter.
This compares with $11.9 per MMBtu in the fourth quarter and $16.7 per MMBtu in the same quarter last year.
Woodside sold 23 percent of produced LNG in the first quarter at prices linked to gas hub indices, representing 13 percent of total equity production.
In addition, the firm said it has achieved record quarterly deliveries of trucked LNG of 327 TJ during the quarter to customers in the North West Australia.
Woodside has now delivered about 1,700 trailers of LNG, offering a lower-carbon alternative to diesel, it said.