Australian LNG player Woodside has completed the previously announced sale of a 10 percent non-operating participating interest in the Scarborough joint venture to LNG Japan, a joint venture consisting of Japan’s Sojitz and Sumitomo.
Woodside sold the stake to LNG Japan’s unit LJ Scarborough Pty Ltd.
According to a statement by Woodside, Japan Organization for Metals and Energy Security (JOGMEC) also bought a 49.9 percent interest in LJ Scarborough from LNG Japan.
The completion of the Scarborough stake sale follows Woodside’s announcement in August 2023 that it had established a strategic relationship with LNG Japan that involved three elements: equity in the Scarborough JV; potential LNG offtake; and collaboration on potential opportunities in new energy.
Woodside said the sale proceeds received by the company of $910 million for equity in the JV comprises the purchase price, reimbursed expenditure, and escalation.
The sale proceeds remains subject to adjustments, it said.
In November 2021, Woodside took a final investment decision on the Scarborough and Pluto LNG Train 2 developments worth about $12 billion.
Pluto Train 2 will get gas from the Scarborough gas field, located about 375 km off the coast of Western Australia, through a new trunkline long about 430 km.
Besides this deal, Woodside recently entered into a binding deal with Japan’s power firm and LNG trader Jera to sell a 15.1 percent non-operating interest in the Scarborough JV for about $1.4 billion.
Following completion of the transaction with Jera in the second half of this year, Woodside’s
interest will be 74.9 percent in the Scarborough JV.
Woodside CEO Meg O’Neil said LNG Japan’s commitment to the Scarborough JV “is a demonstration of the value our customers place on gas as a long-term source of energy as they navigate the energy transition.”
She said that completion of the sale is a “significant milestone” as the company progresses toward first LNG cargo from Scarborough targeted in 2026.
“We are also pleased to welcome Japan Organization for Metals and Energy Security’s equity investment in LJ Scarborough Pty Ltd. JOGMEC’s support reflects the contribution Scarborough gas will make to Japan’s energy security,” O’Neil said.
