Woodside has completed the sale of a 49% non-operating participating interest in the Pluto Train 2 joint venture (JV) 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 JV announced its Final Investment Decision (FID), contemporaneously with the FID 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 (100% project).
The JV arrangements require GIP to fund its 49% 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.
The first LNG cargo from Pluto Train 2 is targeted for 2026.
Woodside CEO Meg O’Neill said she looked forward to developing Pluto Train 2 in close collaboration with GIP. “GIP brings established, global capabilities to the Pluto Train 2 JV which will support delivery of a world-class project.
“The development of Scarborough gas through Pluto Train 2 is expected to deliver significant value to our shareholders, create thousands of jobs and deliver energy to domestic and international customers for decades to come,” she said.