Woodside puts second Pluto LNG train stake up for grabs

Australian energy major Woodside has formally launched the sell-down process for the second train at its Pluto LNG export facility in Western Australia.

Woodside stated a while back that its development option would be processing Scarborough gas through a brownfield expansion of Pluto LNG.

This expansion will include the construction of a second gas processing train with a capacity of 5 million tonnes per annum when the project is 100 per cent completed as well as the installation of additional domestic gas infrastructure to increase capacity to approximately 225 terajoules per day.

In the financial report for the second quarter of 2021, Woodside Acting CEO Meg O’Neill said: “Solid progress has been made towards our targeted final investment decision on Scarborough and Pluto Train 2 in the second half of this year.

“We have launched the formal sell-down process for up to 49 per cent of our equity in Pluto Train 2. In parallel, we have commenced a process to test the market for value-accretive opportunities to reduce our equity in the Scarborough resource.

“We are reviewing project cost estimates following extensive engagement with our contractors over recent months in the lead up to the investment decision.

“Further progress has been made in the implementation of our new energy strategy. We are investigating the supply of approximately 50 MW of solar energy to Pluto LNG from the proposed Woodside Power concept […]”.

The Woodside Power Project will comprise more than 210,000 solar panels, making it one of the largest solar projects in Western Australia.

Woodside partnered up with Western Australia-based company Perdaman to evaluate the supply of a further 50 megawatts of solar power from the project to Perdaman’s proposed urea facility.

The company announced more environmental targets for Pluto in early June as it set new interim and long-term targets to achieve net-zero greenhouse gas emissions by 2050 at the LNG facility. The targets include lowering 30 per cent of emissions by 2030 and reducing 100 per cent of emissions by 2050.

Currently, Pluto LNG processes gas from the offshore Pluto and Xena gas fields. Gas is sent via a 180-kilometre trunkline to a single onshore 4.9 mtpa LNG processing train – also set for modifications during the Pluto Train 2 construction. Scarborough will be developed through new offshore facilities connected by a 430-kilometre pipeline when the proposed expansion of the current Pluto LNG onshore facility is complete.

Earlier this year, Woodside said it still had plans to make a final investment decision (FID) for Scarborough and Pluto Train 2 in the second half of 2021. The company stated in the second quarter financial report that the timing of the sale processes is aligned with the targeted FID in the second half of 2021. It is worth noting that the Scarborough and Pluto Train 2 project could be worth around $11 billion.

As for its financials, the company reported second-quarter sales revenue of $1.29 billion a rise from $768 million from the same period last year.

But Woodside was not only active in the LNG market. The company also recently closed the buy of FAR Limited’s entire participating interest in the Rufisque Offshore, Sangomar Offshore, and Sangomar Deep Offshore (RSSD) joint venture.

Offshore Energy also reported on Wednesday that Woodside would start its 23-well drilling campaign for the Sangomar field development Phase 1 offshore Senegal this week.

The wells will be drilled by two drilling ships, Diamond Offshore’s Ocean BlackRhino and the Ocean BlackHawk. The Ocean BlackRhino arrived in Senegalese waters on 8 July 2021 and the Ocean BlackHawk will arrive in mid-2022.