JERA Co., Inc. (JERA), a global energy company and Japan’s largest electricity producer, has finalised a significant acquisition and partnership with Woodside Energy (Australia) Pty Ltd, a subsidiary of Woodside Energy Group Ltd.
This strategic move involves acquiring a 15.1 per cent participating interest in the Scarborough gas field development project, located 375 kilometres off the coast of Karratha, Western Australia.
Announced in February 2024, the acquisition is valued at approximately US$1.4 billion.
This amount includes the purchase price and reimbursement to Woodside for JERA’s share of expenditures incurred up to the completion of the transaction.
The deal was subject to standard Australian investment conditions and approvals.
The Scarborough Joint Venture encompasses the Scarborough gas field and associated offshore and subsea infrastructure. Natural gas from Scarborough will be transported by Woodside via a 430-kilometre subsea pipeline to the Pluto production facilities operated by Woodside.
JERA will secure an equity share of approximately 1.2 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) cargoes from an expected total production of about 8 Mtpa at the peak rate.
In conjunction with this acquisition, JERA and Woodside have signed a Sale and Purchase Agreement (SPA) for the long-term supply of LNG to Japan.
Under this agreement, Woodside will supply approximately 0.4 million tonnes (six cargoes) of LNG annually over 10 years, starting in April 2026.
The LNG will be sourced from Woodside’s global portfolio.
The financing arrangements for the acquisition include a loan guarantee from the Japan Organisation for Metals and Energy Security (JOGMEC).
Looking ahead, JERA’s Senior Managing Executive Officer and Chief Low Carbon Fuel Officer, Ryosuke Tsugaru, indicated that JERA is exploring further collaboration with Woodside in areas such as lower carbon fuels and Carbon Capture and Storage (CCS).
“JERA and Woodside are committed to responsibly navigating the energy transition,” said Tsugaru.
“LNG is set to be an essential ‘firming fuel’ globally for many years, particularly in developing regions.”
JERA’s interest in Scarborough will be managed by JERA Scarborough Pty Ltd through its wholly-owned subsidiary JERA Australia Pty Ltd, based in Perth.
JERA Australia CEO and Managing Director Gaku Takagi expressed enthusiasm about collaborating with Woodside on this project, highlighting Australia’s strategic importance to JERA and Japan’s energy security.
“Around 35 million tonnes of LNG handled by JERA annually come from Australia,” Takagi noted, emphasising Australia’s critical role in JERA’s operations.
Established in 2017, JERA Australia oversees key investments in Australian LNG projects, including interests in Gorgon, Ichthys, Darwin LNG, and Barossa projects.
