Woodside receives approvals for Scarborough gas project

Woodside Energy Ltd. received government approvals for a pipeline license and the development plan to advance the Scarborough gas project offshore Western Australia.

A pipeline license allows the company to build and operate the gas pipeline through Australian Commonwealth waters. Field development plan approval allows for work in production licenses WA-61-L and WA-62-L.

The milestones follow final investment decisions by the Woodside joint venture in November 2021 to approve the US$12 billion Scarborough and Pluto Train 2 developments.

The approvals are among the final primary Commonwealth and Western Australian Government approvals required to begin Scarborough development, said Meg O’Neill, chief executive officer.

Scarborough, some 375 km off the Western Australian coast, contains an estimated 11.1 tcf of dry gas with a carbon dioxide content of 0.1%.

Development involves installation of a floating production unit (FPU) with eight wells drilled during the initial phase and 13 wells drilled over the life of the field.

Gas is to be transported to Pluto infrastructure on the Burrup Peninsula via a new, 430-km long undersea pipeline and processed through the new Pluto LNG Train 2. First LNG cargo is expected in 2026.

Construction contractors include McDermott for the FPU; Subsea Integration Alliance for subsea hardware, risers, and flowlines; Valaris for the drilling program; Europipe for the trunkline pipe; and Saipem for the trunkline installation.

Woodside has 73.5% interest and operatorship. BHP Petroleum has 26.5%. As Woodside has acquired BHP’s petroleum business, it effectively owns 100% of the Scarborough project.