AUSTRALIA: Woodside Energy Group Ltd has signed a US$1 billion loan agreement with the Japan Bank for International Cooperation (JBIC) to fund its Scarborough Energy Project, further strengthening the Australian energy giant’s balance sheet and providing funding diversity and liquidity.
The loan agreement was executed in Tokyo between Woodside CEO Meg O’Neill and JBIC Deputy Governor Kazuhiko Amakawa.
It follows a memorandum of understanding signed by the two companies in November 2022, aimed at securing a stable energy supply for Japan and assisting in achieving its decarbonisation goals.
“JBIC has supported all of Woodside’s milestone Australian projects, including the North West Shelf, Pluto LNG, and now Scarborough,” said Ms O’Neill.
“It is therefore fitting that we have executed this agreement in the same week that Woodside celebrates 35 years of secure and reliable LNG exports to Japan.”
She added that investment in new Australian LNG supply, like Scarborough, can help Japanese customers meet their energy security needs while supporting regional decarbonisation goals.
Amakawa stated that the loan recognises Woodside’s important role as the operator of major Australian LNG projects in delivering a stable energy supply for Japan.
“This loan will contribute toward securing long-term, stable supplies of LNG, which is an important energy resource for Japan,” he said.
The Scarborough Energy Project is on schedule for its first LNG cargo in 2026.
Work at the Pluto LNG facility is proceeding, with the ongoing arrival and installation of the Pluto Train 2 modules on-site in Karratha, Western Australia.
The installation of the subsea infrastructure and the drilling program continues, while the floating production unit’s living quarters have been installed on the topsides.
The signing follows the previously announced sale of two non-operating participating interests in the Scarborough Joint Venture to JERA (15.1 per cent, completion subject to conditions precedent) and LNG Japan (10 per cent, completed in March 2024).
