In a significant expansion of their strategic partnership, Woodside Energy Group Ltd and JERA Co., Inc. have entered into a comprehensive agreement that marks a pivotal advancement in the energy sector, particularly in the liquified natural gas (LNG) and renewable energy arenas. This deal, valued at approximately US$1,400 million, underscores the growing emphasis on diversification and sustainability within the global energy market.

The cornerstone of this alliance is Woodside’s sale of a 15.1% non-operating participating interest in the Scarborough Joint Venture (JV) to JERA for an estimated total consideration of US$1,400 million. This transaction includes a purchase price of about $740 million, in addition to JERA’s reimbursement to Woodside for its share of expenditure incurred since the effective transaction date of January 1, 2022. The deal’s completion is anticipated in the second half of 2024, contingent upon various regulatory approvals.

Furthermore, the partnership extends into the sale and purchase of six LNG cargoes annually over a decade, starting in 2026, from Woodside’s global portfolio. This agreement, although non-binding, signifies a robust commitment to long-term energy provision and market stability.

Beyond LNG, the agreement harbors potential for groundbreaking advancements in new energy, including ammonia, hydrogen, and carbon management technologies. This collaboration is aimed at bolstering both companies’ decarbonisation ambitions, reflecting a shared vision for a more sustainable energy future.

Woodside CEO Meg O’Neill expressed enthusiasm over the deepened ties with JERA, highlighting the long-standing relationship since 1989 and the strategic importance of the Scarborough project for energy reliability and decarbonisation in the Asian region, particularly Japan. JERA Global CEO Yukio Kani emphasized the critical role of collaboration in addressing global energy challenges, signaling a forward-looking approach to decarbonisation and energy innovation.

The transaction not only amplifies Woodside’s and JERA’s roles in the global energy landscape but also sets a precedent for international cooperation in achieving energy sustainability and security. The Scarborough Energy Project, encompassing the JV and additional infrastructure, is poised to make significant contributions to local employment, government revenues, and carbon management efforts.

Completion of this deal will see Woodside retaining a 74.9% interest in the Scarborough JV, maintaining its position as operator. This strategic maneuver is aligned with broader industry trends towards cleaner energy sources and technological innovation in carbon capture and storage.

This partnership between Woodside and JERA exemplifies the evolving dynamics of the global energy market, where sustainability, innovation, and collaboration become key drivers of growth and resilience. As companies navigate the challenges of energy transition, such alliances are crucial in harnessing the full potential of both traditional and emerging energy sources.

  Australia, JERA, LNG, Meg O’Neill, Scarborough Energy Project, Scarborough field, Woodside