Woodside has established a strategic relationship with LNG Japan, which entails three components: fairness within the Scarborough three way partnership (JV), potential LNG offtake, and collaboration on alternatives in new power.
Woodside has entered right into a sale and buy settlement with LJ Scarborough Pty Ltd (LNG Japan) for the sale of a ten% non-operating taking part curiosity within the Scarborough JV (the transaction).
The acquisition worth is US$500 million, topic to changes. LNG Japan will reimburse Woodside for its share of expenditure for the Scarborough undertaking from the transaction efficient date of 1 January 2022. On completion of the transaction, anticipated in 1Q24, the estimated whole consideration comprising the acquisition worth, reimbursed expenditure and escalation is roughly US$880 million.
Completion of the transaction is topic to circumstances precedent, together with: Overseas Funding Overview Board approval, Nationwide Offshore Petroleum Titles Administrator approvals, and Western Australian Authorities approvals.
As a part of the broader strategic relationship, Woodside and LNG Japan Company have entered right into a non-binding heads of settlement for the sale and buy of 12 LNG cargoes per 12 months (roughly 0.9 million tpy) for 10 years commencing in 2026.
Woodside has additionally entered into non-binding agreements to collaborate with Sumitomo Company and Sojitz Company on world alternatives in new power which may embrace ammonia, hydrogen, carbon seize and storage (CCS), and carbon administration expertise. Following completion, Woodside will maintain a 90% curiosity within the Scarborough JV and stay as operator. Scarborough fuel will likely be processed on the Pluto LNG facility, the place Woodside is at the moment developing Pluto Prepare 2. Woodside can be operator of the Pluto Prepare 2 Joint Enterprise and holds a 51% taking part curiosity.
Woodside CEO, Meg O’Neill, commented: “The assist of LNG Japan is testomony to the standard of the Scarborough undertaking. It additionally underscores the continued demand from Japanese patrons for brand new provides of fuel and the position of fuel in supporting Japan’s power safety.
“Our new power agreements with Sumitomo and Sojitz present additional alternatives for us to work intently collectively on our shared decarbonisation and power safety ambitions.
“Scarborough will likely be an necessary supply of fuel for each the Western Australian and worldwide markets, supporting home jobs and offering taxation income for the State and Federal Governments.
“We stay up for working with LNG Japan to ship this world-class undertaking,” she added.
LNG Japan CEO, Kyo Onojima, stated: “We’re more than happy to hitch the Scar-borough Joint Enterprise and are trying ahead to finalising the LNG offtake settlement and exploring enterprise alternatives within the new power sector.”
Learn the article on-line at: https://www.lngindustry.com/liquid-natural-gas/11082023/woodside-to-sell-10-scarborough-interest-to-lng-japan/