LNG Japan Bought Out a 10% Stake in the Scarborough Gas Project in Australia
Japanese gas company LNG Japan Corp. bought a 10% stake in the large Scarborough natural gas project off the coast of Western Australia from the Australian Woodside Energy Group.
This was reported on August 8 by LNG Japan.
Abstracts from LNG Japan:
- the Scarborough field, which will be developed with 13 wells, will be able to supply up to 8 million tons/year of liquefied natural gas (LNG);
- the 1st LNG shipment is expected as early as 2026;
- natural gas will play an important role in the transition to green energy in Asia, especially at a time when energy security is under threat due to geopolitical risks.
Project Scarborough:
- the Scarborough field is located in the Carnarvon Basin, approximately 375 km off the coast of Western Australia;
- the Woodside Scarborough gas project will be developed with new offshore facilities connected by a pipeline of approximately 430 km to Pluto Train 2 at the existing onshore Pluto LNG facility;
- offshore facilities:
– semi-submersible floating production unit (FSPU):
– 8 wells built at the initial stage,
– 12 wells drilled during the life of the Scarborough gas field,
– all wells will be linked to PPBP;
– FPBP will be moored in 950 m sea depth near the Scarborough gas field;
– processing capacity of Pluto Train 2 (2 LNG lines – Pluto plant) – 5 million tons/year of LNG;
– the capacity of the existing 1 line is up to 3 million tons/year of LNG.
According to Bloomberg:
- the transaction amount will be USD 880 million;
- the Japanese company will receive 12 batches, or approximately 900 thousand tons/year of LNG for 10 years, starting from 2026;
- The Japanese government is encouraging companies to enter into new contracts and stabilize existing supplies after the energy crisis that the country experienced in 2022.
Japan, the world’s largest LNG importer, receives about 9% of all LNG imports from Russia.
This volume provides about 3% of electricity generation in Japan.
Japanese authorities:
- repeatedly stressed the importance of the Russian projects Sakhalin-1 and Sakhalin-2 for the energy security of the country;
- Japanese companies retained their participation in them even after the decision of the Russian Federation to transfer them to Russian jurisdiction.
On April 23, 2023 it became known that the Australian Woodside Energy Group Ltd. in January-March 2023, it more than doubled hydrocarbon production (by 122%) compared to the same period in 2022, to 46.8 million boe.
The average realized price of hydrocarbons in the 1st quarter was $85/boe.
Woodside Energy still forecasts 2023 production in the range of 180-190 mmboe.
At the end of 2022, it amounted to 157.7 million boe.
