LNG in World Markets: Woodside Sells Scarborough Stakes, Supply to LNG Japan

This current feature was extracted from the latest edition of Poten’s LNG in World Markets, a monthly service published on August 31, 2023.

Australia’s Woodside has sold a 10% non-operating stake in the Scarborough gas project to the LNG Japan joint venture firm. The purchase will give LNG Japan access to some 800,000 t/y of equity LNG supply. The Japanese firm also signed a non-binding agreement with Woodside to take 900,000 t/y of Scarborough LNG volumes for 10 years starting 2026.

The deal is the result of discussions tabled since 3Q 2022 between the two firms. Other Japanese firms were also interested in Scarborough equity, besides LNG Japan. Woodside took a final investment decision on the Scarborough gas project offshore northwestern Australia in November 2021. The project is designed to produce 8 MMt/y of LNG at capacity – some 5 MMt/y will be tolled and liquefied at the proposed Pluto Train 2, while the remainder will backfill the existing 4.9-MMt/y Pluto Train 1. Scarborough partners with offtake will use the Pluto facilities for liquefaction and exports via a processing and services agreement. Around 225 TJ/d of gas (or 15% of LNG production) will be reserved for domestic use in western Australia.

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