Page 4 - GLNG Week 50 2021

GLNG COMMENTARY GLNG

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

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

Woodside recently
sanctioned the
Scarborough project
and an expansion of the
Pluto LNG terminal.

P4 www. NEWSBASE .com Week 50 17•December•2021