Woodside has received key primary approvals from the Commonwealth-Western Australian Joint Authority to support execution of its Scarborough project.
The Scarborough joint venture has received an offer for the pipeline licence to construct and operate the Scarborough pipeline in Commonwealth waters.
Approval has also been granted for the Scarborough field development plan enabling Woodside to commence petroleum recovery operations from petroleum production licences WA-61-L and WA-62-L.
These milestones follow final investment decisions made in November 2021 to approve the US$12 billion (US$6.9 billion Woodside share) Scarborough and Pluto Train 2 developments.
Scarborough gas processed through Pluto Train 2 will be one of the lowest carbon intensity sources of LNG delivered to customers in north Asia, with first LNG cargo targeted for 2026.
Woodside chief executive Meg O’Neill said the pipeline licence and field development plan were among the final primary Commonwealth and Western Australian state government approvals required to develop the Scarborough resource.
O’Neill said: “Developing Scarborough delivers value for Woodside shareholders and significant long-term benefits locally and nationally, including thousands of jobs, taxation revenue, and energy security here and abroad.
“The Scarborough reservoir contains only 0.1 per cent carbon dioxide, and Scarborough gas processed through the efficient and expanded Pluto LNG facility supports the decarbonisation goals of our customers in Asia.”
The Scarborough feld is about 375 kilometres off the coast of WA and is estimated to contain 11.1 trillion cubic feet of dry gas.
Development of Scarborough will include the installation of a floating production unit with eight wells drilled in the initial phase and thirteen wells drilled over the life of the field.
The Scarborough joint venture comprises Woodside Energy Scarborough Pty Ltd (73.5 per cent) and BHP Petroleum (Australia) Pty Ltd (26.5 per cent).
Minister for Resources and Water Keith Pitt welcomed the announcement from Woodside that it had received the key approvals for Scarborough.
Pitt said the approvals are another important step forward for the vitally important project.
He continued: “The approval for a pipeline licence through state and Commonwealth waters along with the Scarborough Field Development Plan are significant for the US$12 billion project, which will provide a huge jobs and economic boost for WA and the nation.
“Apart from unlocking enormous gas reserves, it’s estimated the project will have a peak construction workforce of over 3,000 and 600 jobs once it’s operational, including around 230 in the Pilbara.
“Given the current uncertainty around the world, and an energy crisis throughout Europe, it’s projects like this that build Australia’s capacity to ensure long term energy and national security.
“It will also support our international neighbours to secure their own energy needs.”
