Page 4 - AsiaElec Week 50 2021

AsiaElec COMMENTARY AsiaElec

Woodside earmarks $5bn for

new energy investments

Australia’s Woodside has committed to spending $5bn on “new energy” by 2030

in a bid to embrace the energy transition

GLOBAL AUSTRALIA’S Woodside has unveiled its strat- 2021, as well as 10.6mn tonnes of LNG output.
egy for navigating the energy transition. The It would also be a top 10 global LNG producer,
WHAT: plan includes investing $5bn into what the com- Woodside noted in an investor presentation.
Woodside has pany termed “new energy” by 2030. Like other producers, Woodside is figuring
earmarked $5bn worth Woodside is hoping to remain profitable as out how best to balance its oil and gas business
of investments in “new the energy transition accelerates, diversifying its with a strategy that aligns with the energy transi-
energy” products by 2030 portfolio to include cleaner energy but still lev- tion. The company sees a role for further oil and
eraging its existing oil and gas expertise. Indeed, gas projects in its plans, at least in the near term.
WHY: the company has near-term plans to develop “The merged portfolio would have an excit-
The company wants to new oil and gas projects globally. At the same ing pipeline of near-term developments: Sango-
remain profitable as time, though, it is already starting to make moves mar in Senegal; Mad Dog Phase 2, Shenzi North
the energy transition to develop low-carbon projects, and this week it and other attractive opportunities in the Gulf
accelerates, while also announced a planned green hydrogen pro- of Mexico; and Scarborough offshore Western
leveraging its oil and gas ject in the US. Australia,” Woodside’s CEO, Meg O’Neill, stated.
expertise The energy transition plans that Woodside “These, together with other potential oil, gas
has announced are based on the assumption and new energy developments, will provide an
WHAT NEXT: that the company’s proposed merger with BHP’s enviable hopper of opportunities competing for
The update came during oil and gas business will go ahead. According capital.”
the same week that to the company, the merger – which is subject O’Neill also said that she expected LNG to
Woodside announced to a number of conditions that need to be met remain an important part of the energy mix “for
plans for a green before July 2022 in order to close – will create decades to come”, both as a cleaner source of fuel
hydrogen project in the a top 10 independent oil and gas producer on a than coal and as “convenient firming capacity for
US global basis. renewables”.
Indeed, when Woodside sanctioned the
Short-term plans Scarborough project last month, it also gave
Assuming the merger is completed, the com- the green light to expand the Pluto LNG ter-
bined company would have around 200mn minal, which will be fed by Scarborough. In
barrels of oil equivalent (boe) of production in this week’s announcement, O’Neill described

P4 www. NEWSBASE .com Week 50 15•December•2021