Woodside to sell 49% stake in Scarborough’s Pluto Train 2

Pluto Train 2 (Woodside challenge)
Pluto Train 2 (Image: Jarrad Seng)

Woodside has entered into a sale and purchase agreement with Global Infrastructure Partners (GIP) for the sale of a 49 per cent non-operating participating interest in the Pluto Train 2 Joint Venture.

Pluto Train 2 is a key component of the proposed Scarborough development and includes a new LNG train and domestic gas facilities to be constructed at the existing Pluto LNG onshore facility. The estimated capital expenditure for the development of Pluto Train 2 from the effective date is US$5.6 billion.

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The development of Pluto Train 2 is expected to be supported by a long-term processing and services agreement (PSA).

The transaction includes a number of other related agreements between Woodside and GIP including a project commitment agreement (PCA). The PCA includes provisions for GIP to be compensated for exposure to additional Scope 1 emissions liabilities above agreed baselines, and to sell its 49 per cent interest back to Woodside if the status of key regulatory approvals materially changes.

Following completion, expected in January 2022, Woodside will hold a 51 per cent participating interest in the Pluto Train 2 Joint Venture and remain as operator.

Woodside CEO Meg O’Neill said, “We are very pleased to have GIP joining us in the development of Pluto Train 2, given their impressive credentials and extensive global capability. We are looking forward to a successful, long-term relationship with them.

“GIP’s investment will help fund the expansion of the world-class Pluto LNG facility. The LNG supplied from the expanded Pluto facility will assist our customers to achieve their decarbonisation goals through the energy transition.

“The sale … is a significant milestone as we progress towards a final investment decision on our Scarborough development, further de-risking this globally competitive investment.

“The development of Scarborough gas through Pluto Train 2 will deliver significant value to our shareholders, create thousands of jobs in Western Australia and generate tax revenues for decades to come.

“Pluto Train 2 will be one of Australia’s most efficient LNG trains and with Scarborough gas containing virtually no carbon dioxide, this is an attractive investment in a decarbonising world,” she said.

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GIP chairman and managing partner Adebayo Ogunlesi said, “We are delighted to partner with Woodside, a global leader in operating responsibly and safely, to develop this world-class facility.

“We are particularly attracted to the modern and efficient technologies Woodside has adopted, making LNG from Pluto Train 2 one of the lowest carbon intensity sources of LNG delivered into Asia. We fully support Woodside’s net-zero emissions targets for Pluto LNG including Pluto Train 2, and all its wider commitments to the community.”

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