LNG Japan Corporation has entered a sale and purchase agreement with Woodside to buy a 10 percent stake in the Scarborough joint venture.
The transaction is subject to relevant Australian and Western Australian government approvals, the company noted in its media statement.
As a 10 percent participating interest holder in the Scarborough joint venture, LNG Japan’s wholly owned subsidiary LJ Scarborough Pty Ltd (LJS) will cooperate with Woodside in developing the project, which is targeting first LNG cargo in 2026, LNG Japan noted. LJS will independently market and sell its equity LNG cargoes (up to 0.8 Mtpa), the company said in its statement.
As part of a broader strategic relationship, LNG Japan and Woodside have entered into a non-binding heads of agreement for the sale and purchase of 12 LNG cargoes per year for 10 years commencing in 2026, LNG Japan pointed out. In addition, LNG Japan said its shareholders, Sumitomo Corporation/Sojitz Corporation, and Woodside will explore further business opportunities in the new energy sector.
The Scarborough joint venture comprises the Scarborough field and associated offshore and subsea infrastructure LNG Japan highlighted. The Scarborough field is located approximately 233 miles off the coast of Western Australia.
The Scarborough project will include the installation of a floating production unit with eight wells drilled in the initial phase and thirteen wells drilled over the life of the Scarborough field, LNG Japan outlined, adding that natural gas produced from the Scarborough field will be transported via a subsea pipeline to the Pluto LNG facilities.
The Scarborough field will supply gas to support production of up to 8.0 million tons per annum (Mtpa) of LNG, and domestic gas equivalent to 15 percent of LNG production, which will be reserved for domestic use in support of the State of Western Australiaʼs domestic gas policy, the company said.
Approximately five Mtpa of Scarborough gas will be processed through Pluto Train 2, with up to three Mtpa processed through the existing Pluto Train 1, LNG Japan outlined. Final investment decision on the Scarborough project, with $5.7 billion development cost (100 percent basis), and the Pluto Train 2 development, was taken by Woodside in November 2021.
“The Scarborough and Pluto Train 2 project continued to make good progress and is now 38 percent complete. Fabrication of both the topsides and hull of the floating production unit has ramped up. The accommodation village in Karratha, which will service the Pluto Train 2 construction workforce, is now complete. Pluto Train 2 module fabrication and foundation site works is progressing well,” Woodside CEO Meg O’Neill said mid-July.
The Scarborough field contains a relatively low volume of CO2 (less than 0.1 percent), LNG Japan highlighted in its statement. Greenhouse gas emissions during the production phase are planned to be mitigated as a result of the implementation of energy efficient measures in the design and operation of the project, and a government approved GHG abatement program, it added.
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