Woodside Energy advances Scarborough Energy Project, secures strategic pipeline milestone

Woodside Energy Group has finalized the technically challenging 433-kilometre installation of the gas trunkline for its Scarborough Energy Project, a strategically significant development within Western Australia’s energy landscape. This project is central to Australia’s ambitions to bolster its liquefied natural gas (LNG) export capacity, addressing the increasing global demand for lower-carbon energy alternatives while simultaneously solidifying the nation’s standing as a key player in the international LNG market.

The successful completion of this trunkline is anticipated to strengthen Australia’s energy security and yield substantial long-term economic benefits through expanded energy exports. This critical infrastructure will establish a direct connection between the offshore Scarborough gas field, situated in the Carnarvon Basin, and the onshore Pluto LNG processing facility in Karratha, facilitating efficient gas extraction and processing. The intricate installation required 12 months of coordinated efforts from numerous teams, contractors, and specialized equipment, marking a considerable progression towards operational readiness for one of Australia’s most significant LNG initiatives.

Key Milestone in Scarborough Energy Project

Woodside Energy’s executive vice president and Australia chief operating officer, Liz Westcott, emphasized that the installation of the trunkline represents a major milestone for the Scarborough Energy Project. She acknowledged the extensive efforts of the diverse teams involved, highlighting that this achievement reflects their dedication to advancing this crucial project phase. Westcott added that with the foundational infrastructure now established, the company will focus on safely completing the remaining project tasks, thereby enabling the first shipment of LNG from Scarborough in 2026.

The successful trunkline installation is a pivotal component of the broader strategic development for the Scarborough field. Woodside has underscored that this infrastructure is fundamental to enabling the smooth conveyance of natural gas from offshore production facilities to onshore processing units, where it will be converted into LNG for both export and domestic use. The successful completion of this phase addresses complex logistical and technical challenges inherent to underwater construction in deep waters, reinforcing the essential role of engineering innovation and excellence in overcoming such obstacles.

Scarborough Project Progress and Economic Contribution

The Scarborough Energy Project is now over two-thirds complete, contributing significantly to meeting the rising demand for lower-carbon energy, both at a domestic and global level. The project is set to deliver up to 225 terajoules of natural gas per day to Western Australia, which will play an essential role in reinforcing the stability of the domestic gas market.

Woodside Energy is positioning the Scarborough Project as a critical provider of cleaner energy, facilitating the transition away from coal and other high-emission fuels. For instance, the LNG produced through this project will markedly reduce greenhouse gas emissions compared to coal when used for power generation, providing a more environmentally sustainable energy source for both domestic and international markets. As global priorities shift towards reducing carbon emissions, the Scarborough Project aims to fulfill international LNG demand, with LNG being considered a relatively cleaner fossil fuel. This development is poised to be an integral part of Australia’s strategy to augment its LNG export capabilities, solidifying the nation’s status as a reliable energy supplier, particularly to energy-intensive Asian economies.

The project is also projected to generate substantial economic gains, with more than A$50 billion (approximately $33.7 billion) in direct and indirect tax revenues expected to be contributed to the Australian economy over its operational lifespan. In addition, it is creating considerable employment opportunities, having generated over 3,000 jobs during the construction phase and sustaining an estimated 600 positions throughout its operational life. These employment opportunities extend beyond on-site roles, encompassing indirect positions across supporting industries such as engineering services, supply chain logistics, and local business services.

The economic benefits of the Scarborough Project extend beyond taxation and direct employment. The project is fostering investments in local communities, creating training programs to upskill workers, and contributing to regional infrastructure development across Western Australia. The far-reaching effects of a project of this scale are expected to stimulate growth in ancillary sectors, including maritime logistics, equipment manufacturing, and professional services. Furthermore, the project is anticipated to catalyze technological advancements in subsea engineering and offshore construction, positioning Australia as a global leader in these specialized domains.

Offshore and Onshore Facilities Development

The Scarborough gas field, located approximately 375 kilometres off the Pilbara coast, involves the construction of new offshore facilities that will be integrated with a second LNG train at the existing Pluto LNG onshore processing facility. As part of this endeavor, a floating production unit (FPU) will be installed, with eight wells to be drilled in the initial development phase. Ultimately, a total of 13 wells will be drilled and connected to the semi-submersible FPU, which will be anchored in 950 metres of water near the Scarborough gas field.

The installation of the subsea infrastructure and the FPU, incorporating advanced subsea compression and pipeline technologies, is pivotal in ensuring the efficient extraction and transportation of gas from the Scarborough field to processing facilities. The use of state-of-the-art technologies, such as robotic inspection tools and autonomous underwater vehicles, has streamlined installation processes and guarantees the long-term safety and efficiency of the infrastructure. The project aims to process approximately five million tonnes per annum (Mtpa) of gas through Pluto Train 2, with an additional three Mtpa processed via the existing Pluto Train 1. This expanded capacity will enable Woodside Energy to cater to the increasing global demand for LNG, thereby reinforcing Australia’s status as a leading LNG exporter.

Employing advanced subsea technology not only enhances production efficiency but also mitigates operational risks. These technologies are designed to endure the harsh conditions of the marine environment, thereby ensuring a consistent flow of natural gas while minimizing environmental impacts. The facilities’ design incorporates cutting-edge safety measures, with a strong emphasis on worker safety and environmental conservation. By integrating the latest in safety and environmental monitoring technologies, Woodside aims to align the Scarborough development with regulatory standards and community expectations, maintaining the highest levels of operational integrity.

Strategic Financial Support for Scarborough Project

In May 2024, Woodside Energy secured a $1 billion loan from the Japan Bank for International Cooperation (JBIC) to aid in the development of the Scarborough Energy Project. This financial backing follows Woodside’s earlier announcement regarding the sale of non-operating interests in the Scarborough joint venture. Japanese energy conglomerates JERA and LNG Japan have acquired stakes of 15.1% and 10%, respectively, with JERA’s acquisition pending fulfillment of conditions precedent.

The financial support from JBIC highlights substantial international interest in the Scarborough Project, particularly from energy-dependent nations such as Japan, which are eager to secure consistent LNG supplies. The collaboration with Japanese stakeholders not only enhances bilateral energy relations but also ensures that Japan has a reliable LNG supply to meet its domestic energy requirements, demonstrating confidence in Woodside’s expertise in delivering large-scale energy projects. This partnership is crucial for Japan, which remains highly reliant on imported energy, and also reflects Japan’s strategic commitment to diversifying its energy sources amidst the ongoing global transition towards cleaner energy alternatives.

Woodside has articulated that these partnerships and financial agreements are consistent with its broader strategic objectives of sharing project risk while ensuring the availability of sufficient capital to bring the project to fruition. The involvement of international financiers and stakeholders serves as a testament to the robustness of the project and its significant role in contributing to global energy security. These collaborations bring valuable international expertise, which is expected to further improve the project’s operational efficiency and adherence to stringent safety standards.

Woodside Energy continues to make considerable progress towards the realization of the Scarborough Project, underscoring its importance to Australia’s energy landscape and Woodside’s dedication to developing stable and sustainable energy resources. The project represents a major stride in Australia’s ongoing efforts to meet both domestic energy demands and the growing international requirement for lower-carbon energy sources. By establishing robust international partnerships and adopting cutting-edge technologies, Woodside is setting an industry benchmark for future LNG projects, ensuring that Australia maintains a leadership position in the global energy sector.