Woodside Petroleum and BHP invest $ 12 billion to develop gas field in Western Australia

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Woodside Petroleum and BHP Group gave the final “OK” for the $ 12 billion investment in the development of the Scarborough gas field in Western Australia and the expansion of the Pluto gas plant, with the first shipment expected in 2026.

The approval came just as Woodside and BHP signed an agreement to merge BHP’s oil arm in Woodside to create the world’s leading, independent oil and gas producer, as originally announced in August.

“Today’s decisions put Woodside on a path to transformation. Scarborough will make a significant contribution to Woodside cash flows, financing future developments and new energy products, and shareholder returns,” said Meg O, CEO of Woodside. ‘Neil, in an announcement.

The twin project Scarborough and Pluto Train 2 is essential for the future of Woodside, Australia’s largest independent oil and gas company, which has had limited growth for many years.

The final investment decision for the project was postponed in March last year, due to the pandemic.

Scarborough will be able to produce 8 million tonnes per year of LNG for exports and 180 terajoules of gas per day for the domestic market.

Consumers have already shown interest in acquiring 60% of Scarborough capacity, including gas for a proposed plant in Western Australia.

Woodside’s investment stake in the project is $ 6.9 billion, while BHP on Monday approved $ 1.5 billion in spending for the first phase of Scarborough development.

She is not a shareholder in the LNG Pluto plant.

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Source From: Capital

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