Woodside secures $1bn loan from JBIC for Scarborough gas project
Australia’s Woodside announced on May 30 the signing of a $1bn loan agreement with the Japan Bank for International Cooperation (JBIC) to fund the Scarborough gas project.
The deal, executed in Tokyo between Woodside CEO Meg O’Neill and JBIC deputy governor Kazuhiko Amakawa, aims to strengthen Woodside’s balance sheet by providing diverse funding and liquidity. This agreement follows a memorandum of understanding signed by Woodside and JBIC in November 2022.
“Investment in new Australian LNG supply, like Scarborough, can help Japanese customers meet their energy security needs while also supporting regional decarbonisation goals,” O’Neill stated.
Amakawa highlighted Woodside’s role in ensuring stable energy supplies for Japan. “This loan will contribute toward securing long-term, stable supplies of LNG, which is an important energy resource for Japan,” he said. JBIC has supported all of Woodside’s milestone Australian projects including the North West Shelf, Pluto LNG and now Scarborough.
The final investment decision on the Scarborough project was made in November 2021, with the commencement of LNG cargo targeted for 2026. Work at the Pluto LNG facility is progressing with the ongoing arrival and installation of the Pluto Train 2 modules on-site in Karratha, Western Australia, according to Woodside. Installation of subsea infrastructure and the drilling programme are ongoing, and the floating production unit’s living quarters have been installed on the topsides.
The signing of the loan agreement follows the previously announced sale of two non-operating participating interests in the Scarborough joint venture to Jera and LNG Japan.
The Scarborough project, located approximately 375 km off the coast of Western Australia, includes the Scarborough joint venture, the Pluto Train 2 joint venture, and modifications to Pluto Train 1 to accommodate Scarborough gas. Gas from Scarborough will be processed at the Pluto LNG facility, where Woodside is currently constructing Pluto Train 2, which would have a capacity of about 5mn tonnes/year.