Woodside has accepted two production licences for the $17 billion Scarborough project off WA’s North West coast.
The licences were the next hurdle in the delayed projects, which involve sending gas from the Scarborough gas field to an expanded Pluto LNG facility in the Pilbara. The project is a joint venture between Woodside and BHP and a final investment decision is expected in the second half of 2021.
Woodside has come under fire from members of the federal government for stalling its decision on Scarborough and Browse gas projects.
Woodside chief executive Peter Coleman said by accepting the licences, the joint venture was demonstrating a strong commitment to take the project forward.
“The impacts of COVID-19 and the ensuing volatility in market and investment conditions have provided us with an opportunity to review options for the Scarborough development, allowing us to improve execution certainty and increase the value of this world-class resource,” he said.
“With production licences and the offshore project proposal environmental approval in place, Woodside will have secured the key primary Commonwealth approvals required to support a final investment decision.”
Resources, Water and Northern Australia minister Keith Pitt said the Scarborough project would create thousands of jobs and help Australia retain its position as the biggest exporter of LNG in the world.
“Developing Scarborough, through expansion of the Pluto LNG facility, is expected to create more than 3200 jobs during the construction phase, and an average of more than 1300 jobs a year during operations,” he said.
“The project will also help maintain Australia’s position as one of the world’s largest LNG producers whilst contributing to domestic gas supply and supporting our economy.
Source: Thanks smh.com