Page 5 - GLNG Week 47 2021

GLNG COMMENTARY GLNG

Pluto LNG’s onshore
component, which
involves modifying
the facility’s existing
liquefaction train to
process Scarborough
gas while also building
a second train, will cost
$6.3bn.

quality customer support with approximately strategy to supply lower-carbon energy to our
60% of Scarborough capacity contracted, customers across the globe.”
including domestic gas for the proposed Perda- The merged unit is also expected to deliver
man urea project.” estimated pre-tax savings of more than $400mn
Perdaman Industries intends to build and per year from optimising corporate processes
operate the AUD4.5bn ($3.25bn), 2mn tonne and systems.
per year (tpy) urea plant at the Burrup Strategic Even as Woodside works on absorbing BHP’s
Industrial Area, in Western Australia. The WA upstream operations, it has also made progress
Environmental Protection Authority (EPA) rec- on reducing its exposure to Pluto’s second train.
ommended the project for approval in Septem-
ber, subject to conditions including air quality. Divestment process If Pluto Train 2’s
Woodside has also made progress towards its Woodside has agreed to sell a 49% non-oper-
proposed merger with BHP’s upstream opera- ated stake in the Pluto Train 2 to Global Infra- total capex is less
tions, first announced in August. structure Partners (GIP), the developer said on than $5.6bn, GIP
November 15.
Merger progress Under the deal, GIP has agreed to provide will pay Woodside
Woodside said that under the terms of the new $835mn of construction capital expenditure
SSA that it would issue new shares to acquire in addition to its 49% share of capex, reducing an additional
all of BHP Petroleum’s share capital. With the Woodside’s capital contributions in the pro-
merger slated for completion in the second cess. Woodside, however, added that GIP’s final amount equal
quarter of next year, Woodside’s share issue is capital contribution would be dependent on an to 49% of the
expected to comprise around 48% of the devel- interest rate swap and foreign exchange rates on
oper’s share capital on a post-issue basis. the date of the Scarborough and Pluto Train 2 under-spend.
Woodside said the merger would create one FIDs.
of the world’s largest independent energy pro- If Pluto Train 2’s total capex is less than
ducers with “a high-margin oil portfolio, long- $5.6bn, GIP will pay Woodside an additional
life LNG assets and the financial resilience to amount equal to 49% of the under-spend.
help supply the energy needed for global growth Woodside will, however, have to cover GIP’s
and development over the energy transition”. share of any cost overrun pay up to a total of
O’Neill said: “Our emissions reduction targets $835mn. Woodside has agreed to pay GIP in
will apply to the combined portfolio, supporting relation to any delays to the expected start-up
our aspiration to be net-zero by 2050 and our of production, under certain circumstances.™

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