Page 24 - GLNG Annual Review 2021

GLNG NOVEMBER GLNG

Woodside takes FIDs on

Scarborough and Pluto LNG 2

Australia’s Woodside has reached final investment decisions for both the

Scarborough gas field and the expansion of the Pluto LNG facility

INVESTMENT AUSTRALIA’S largest oil and gas producer by 5% in August to $12bn.
Woodside has reached final investment deci- Pluto LNG’s onshore component, which
WHAT: sions (FIDs) for both the Scarborough gas field involves modifying the facility’s existing lique-
Woodside has announced development as well as the expansion of the faction train to process Scarborough gas while
FIDs on both the Pluto LNG facility. also building a second train, will cost $6.3bn.
Scarborough gas field Woodside announced the FIDs on November Bringing Scarborough on stream, meanwhile,
and the Pluto LNG 22, the same day it revealed that it had signed a is slated $5.7bn.
expansion. binding share sale agreement (SSA) with BHP Woodside said in November that the
– a Scarborough project partner – on the inde- expanded project’s first cargo of LNG was slated
WHY: pendent’s merger with the mining giant’s oil and for delivery in 2026.
The company expects gas portfolio. “Scarborough will be a significant contrib-
Scarborough to be a Woodside operates the Scarborough joint utor to Woodside’s cash flows, the funding of
significant contributor to venture, which will supply gas from four fields future developments and new energy prod-
cash flow, and recently estimated to hold 13 trillion cubic feet (368bn ucts, and shareholder returns,” Woodside CEO
had a new partner invest cubic metres) of 2C dry gas to the expanded Meg O’Neill said. She added: “The contracting
in Pluto. Pluto LNG, in partnership with BHP Petroleum. model, development concept and execution
Moreover, the investment decisions come just strategy have been designed to reduce cost risk
WHAT NEXT: a week after the developer announced that it had and protect shareholder value.”
The expanded Pluto agreed to sell a 49% non-operated stake in Pluto O’Neill said the Scarborough reservoir con-
plant’s first cargo of LNG Train 2 to Global Infrastructure Partners (GIP). tained only around 0.1% carbon dioxide (CO2),
was slated for delivery adding that this would make the project one of
in 2026. Development nod the least carbon intensive sources of delivered
Woodside upped the expansion project’s com- LNG.
bined onshore and offshore development costs O’Neill said: “The [FID] is underpinned by

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