LNG export facility in Scarborough expects first shipment around mid-2026
Woodside Energy, an Australian energy company, has made significant strides in its projects, with the completion of a major deal and the progress of the Scarborough Energy Project in Western Australia.
In June, Woodside Energy sold down a 40% interest in Louisiana LNG Infrastructure to Stonepeak for $5.7bn. This move followed a final investment decision taken by Woodside Energy on Louisiana LNG in April, with production slated for 2029. Stonepeak will contribute 75% of the expected project capital expenditure over 2025 and 2026.
Meanwhile, the Scarborough Energy Project is 86% complete. The project, which includes the construction of Pluto Train 2, modifications to Pluto Train 1, and an integrated remote operations centre in Perth, is targeting first LNG cargo in the second half of 2026. The project has a planned capacity of 8 million tonnes per annum (mtpa).
The Scarborough project will involve the installation of a floating production unit with eight wells drilled in the initial phase, and 13 wells over the life of the gas field. Woodside Energy announced a net profit after tax of $1.3bn during half-year results, attributing it to a "strong focus" on cost management and reduced spend on new energy and exploration.
The Scarborough Energy Project also marks a significant step in Woodside Energy's international expansion. In June, the company signed a non-binding Heads of Agreement with Petronas for the supply of 1 mtpa of gas to Malaysia for 15 years from 2028.
However, the energy sector in the region has faced challenges. Production from Victoria's domestic-focused gas fields in eastern Australia is declining. The lack of competition in the region since the start of LNG exports in Queensland a decade ago has tripled gas prices, according to the Institute for Energy Economics and Financial Analysis. Domestic gas prices in the region have become linked to international markets, contributing to a material decline in domestic gas demand.
Despite these challenges, Woodside Energy continues to make strategic moves to secure its position in the global LNG market. In June 2021, the company entered into a joint venture with PEMEX for the Scarborough Energy Project, with Woodside holding a 60% interest and PEMEX 40%, with Woodside operating the project and fulfilling PEMEX’s contributions as part of the agreement.
As Woodside Energy moves forward with its projects, it will be interesting to see how the company navigates the changing landscape of the global energy market.
Read also:
- Gambling establishments issue warnings about potential hip and knee injuries due to risky activities
- Overnight Sanitization at Gujarat Hospital Before Prime Minister's Arrival Following Bridge Disaster
- EU's net zero future is potentially in jeopardy?
- Implementation Underway for a New Equal Treatment Regulation in Social Security for Men and Women by the Commission
