Woodside sanctions Scarborough, Pluto Train 2
Woodside Petroleum has taken final investment decisions to approve the Scarborough and Pluto Train 2 developments, including new domestic gas facilities and modifications to Pluto Train 1, the company said on November 22.
The $12bn LNG project is expected to deliver significant cash flow and enduring value to shareholders, it said, adding Scarborough gas processed through Pluto Train 2 will be one of the lowest carbon intensity sources of LNG delivered to customers in north Asia, with first LNG cargo targeted for 2026.
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“The Scarborough reservoir contains only around 0.1% CO2, and Scarborough gas processed through the efficient and expanded Pluto LNG facility supports the decarbonisation goals of our customers in Asia,” Woodside CEO Meg O’Neill said. “The final investment decision is underpinned by quality customer support with approximately 60% of Scarborough capacity contracted, including domestic gas for the proposed Perdaman urea project.”
Woodside’s share of investment in the project, which is co-owned by BHP Group, is $6.9bn. Last week, Woodside agreed to sell its 49% non-operated stake in Pluto Train 2 joint venture to private equity firm Global Infrastructure Partners. Pluto Train 2 is a key component of the proposed Scarborough development and includes a new LNG train and domestic gas facilities to be constructed at the existing Pluto LNG onshore facility in Western Australia.
The Western Australian government in a separate statement welcomed the FIDs, which it said would create more than 3,200 jobs in the state.
"My government is committed to supporting projects that create more jobs for Western Australians,” premier Mark McGowan said. "In the coming days, we will execute agreements with the Scarborough and Pluto Train 2 joint ventures that will provide energy certainty for the state and support thousands of local jobs, as well as providing a transition fuel source for our major trading partners."