Woodside picks Australian engineering firm to prepare Pluto LNG for gas from $12.5 billion project

Woodside Burrup, a subsidiary of Australia’s Woodside Energy, has handed out a construction contract for its Pluto liquefied natural gas (LNG) Train 1 facility revamp to Monadelphous Group, a compatriot engineering player. This will enable the required changes to process gas from its giant project off the coast of Western Australia, where the first LNG production is slated for 2026.

Monadelphous is getting approximately A$200 million or around $130.93 million for activities it will perform under the contract, covering mechanical, electrical, instrumentation, and commissioning works needed to modify the existing Pluto LNG Train 1 facility and associated infrastructure near Karratha in Western Australia to ensure the processing of gas from the Scarborough energy project at these facilities.

Zoran Bebic, Monadelphous’ Managing Director, commented: “We are pleased to continue to support Woodside and build on our reputation for the delivery of safe and reliable construction services, which Monadelphous has previously performed at the Pluto LNG project.”

The engineering company provides maintenance, shutdown, and brownfield project services under a long-term agreement at various Woodside-operated onshore and offshore gas production facilities. A 3.2-kilometer pipeline connects Pluto LNG with the Karratha Gas Plant (KGP).

Currently, the Australian energy giant is making inroads in developing the Scarborough project’s Pluto Train 2. A few months ago, a 3,460-ton compressor module arrived at the construction site in Karratha. The Scarborough gas field will be developed through new offshore facilities connected by a 430 km pipeline to a second LNG train at the existing Pluto LNG onshore facility.

This project entails the installation of a floating production unit (FPU) with eight wells drilled in the initial phase and thirteen wells drilled over the life of the gas field. All wells will be tied back to a semi-submersible FPU moored in 950 meters of water close to the Scarborough field.

While around 5 million tons of gas per annum (mtpa) will be processed through Pluto Train 2, up to 3 mtpa will be processed through the existing Pluto Train 1. Located in the Carnarvon Basin, 375 km off the Pilbara coast of Western Australia, Scarborough was 67% complete at the end of Q2 2024.

After the total project cost estimate jumped 4% to $12.5 billion from the previous cost estimate of $12 billion when a final investment decision (FID) was disclosed in November 2021, Woodside placed the blame for the cost increase on the scope maturation of the Pluto Train 1 modifications project. 

While 51 modules are required for the Scarborough project’s Pluto Train 2, Woodside confirmed the delivery of 29 to the site, with 25 modules set in position at the end of the quarter. With all major engineering reviews for the Pluto Train 1 modifications out of the way, around 80% of materials and equipment have been ordered.

The Scarborough development is anticipated to contribute an estimated $19 billion in direct taxes and spend $90 million with local Karratha businesses. Recently, $1 billion has been secured in funding from Japan Bank for International Cooperation (JBIC) for the project.