Woodside has completed the sale of a 49 per cent non-operating participating interest in the Pluto Train 2 joint venture to Global Infrastructure Partners (GIP).
This follows Woodside’s announcement on 15 November 2021 that it had entered into a sale and purchase agreement with GIP.
On 22 November 2021 the Pluto Train 2 joint venture announced its final investment decision, contemporaneously with the final investment decision for the Scarborough development.
Pluto Train 2 is a key component of the Scarborough development and includes a new LNG train and domestic gas facilities to be constructed at the existing Pluto LNG onshore facility.
The estimated capital expenditure for the development of Pluto Train 2 from the effective date of 1 October 2021 is US$5.6 billion.
Joint venture arrangements require GIP to fund its 49 per cent share of capital expenditure and an additional amount of construction capital expenditure of approximately US$822 million.
Woodside’s capital expenditure will be reduced accordingly.
First LNG cargo from Pluto Train 2 is targeted for 2026.
Woodside chief executive officer Meg O’Neill said she looked forward to developing Pluto Train 2 in close collaboration with GIP.
She said: “GIP brings established, global capabilities to the Pluto Train 2 joint venture which will support delivery of a world-class project.
“The development of Scarborough gas through Pluto Train 2 is expected to deliver significant value for our shareholders, create thousands of jobs, and deliver energy to domestic and international customers for decades to come.”
Pluto LNG is an onshore processing facility located near Karratha in the northwest of Western Australia and delivered first cargo from the single-train facility in 2012.
Expansion of Pluto LNG will include the construction of Pluto Train 2, associated domestic gas processing facilities, supporting infrastructure, and modifications to Pluto Train 1 to allow it to process Scarborough gas.
Bechtel has been selected as the engineering, procurement and construction contractor for Pluto Train 2 and integration into existing Pluto LNG facilities.
In order to purchase its 49 per cent stake in Pluto Train 2, GIP was lent US$3.49 billion by a consortium of 18 global banks, including NAB, ANZ, and Westpac.
There as been criticism surrounding the banks’ decision, which effectively trashes any net zero commitments they have by pacing the way for carbon emissions at the scale of 15 coal power stations.
Market Forces campaigner Jack Bertolus said the International Energy Agency had made it clear there was no room for new fossil fuel supply projects if the goals of the Paris Climate agreement are to be achieved.
He added: “Yet, despite a clear commitment to net zero, NAB has just led a global banking consortium to enable a 1.6 billion tonne carbon bomb, with ANZ and Westpac as part of the deal.
“The immensity of the fossil fuel project is matched only by the banks’ willingness to repeatedly con their customers and their investors, who are all demanding action on the climate crisis.
“In reality, their money is being used to fund a project enabling emissions equivalent to running 15 coal plants for three decades.”
Other banks include Japanese megabanks Mizuho, MUFG and SMBC, UK’s HSBC and Standard Chartered, and the Bank of China.
The project poses unacceptable risks to fragile marine life and irreplaceable Murujuga Aboriginal rock art, which is under consideration for World Heritage listing.
