Australia, 30 May, 2024 (The Energy Circle) - Woodside, the prominent Australian oil and gas company, has secured a $1 billion loan from the Japan Bank for International Cooperation (JBIC) to advance the Scarborough gas project offshore Australia. This financial boost will diversify Woodside’s funding and enhance its liquidity.

This agreement originates from a memorandum of understanding signed in November 2022 between Woodside and JBIC, aiming to ensure a stable energy supply for Japan and support its decarbonisation efforts. The Scarborough project will deliver its first liquefied natural gas (LNG) cargo by 2026. Significant progress is being made at the Pluto LNG facility in Karratha, Western Australia, with the continuous arrival and installation of the Pluto Train 2 modules.

Subsea infrastructure installation and the drilling program are ongoing, and the floating production unit’s living quarters have been installed on the topsides. This loan agreement follows the recent sale of two non-operating interests in the Scarborough Joint Venture: a 15.1% stake to JERA, pending certain conditions, and a 10% stake to LNG Japan2, completed in March 2024.

Woodside CEO Meg O’Neill highlighted the strong relationship with Japanese investors, noting JBIC’s long-standing support for Woodside’s projects like the North West Shelf and Pluto LNG. Celebrating 35 years of reliable LNG exports to Japan, O’Neill emphasised that investing in new LNG supplies, such as Scarborough, will help meet Japan’s energy security and regional decarbonisation goals.

This strategic financial arrangement highlights the critical role of international partnerships in advancing energy projects and achieving sustainability targets.