LNG

UK-based engineering firm Wood Plc has been chosen as lead consultant for an independent study of the next big potential Asia-Pacific LNG export project, the Greater Sunrise Development using gas resources from the Timor Sea.

June 21 (LNGJ) - Woodside Energy, the Australian LNG operator, has revised its leadership structure to deliver the next phase of strategy after the merger with BHP’s petroleum business. The new structure takes effect from August with key appointees having Executive Vice President and other titles and split Australian and International Chief Operating Officer roles.

   The new team under Chief Executive Meg O’Neil includes Chief Financial Officer Graham Tiver; COO Australia Liz Westcott; COO International Daniel Kalms and Chief Commercial Officer Mark Abbotsford. Other posts include Technical and Energy Development Julie Fallon; Strategy Andy Drummond; and External Affairs Tony Cudmore. CEO O’Neil thanked departing members Shiva McMahon and Matthew Ridolfi.

Woodside Energy, the leading Western Australian liquefied natural gas plant operator with North West Shelf and Pluto LNG, has boosted the economic prospects of the West African nation of Senegal by achieving first oil from the Sangomar field, Senegal’s first offshore oil project. 

Woodside Energy, the key supplier of LNG to North Asia from two operated plants in Western Australia, has shrugged off the rejection at its annual meeting in Perth of a non-binding vote on its climate change policies as several politically-motivated pension funds and advocacy groups voted against it as not going far enough.

Woodside Energy, the operator of the Northwest Shelf LNG project and Pluto LNG in Western Australia, has completed the sale of a 10 percent non-operating participating interest in the Scarborough Gas joint venture for US$910 million to the LNG Japan group.

The completion follows Woodside’s announcement in August 2023 that it had established a strategic relationship with LNG Japan that involved equity in the Scarborough project, potential LNG offtake and collaboration on opportunities in new energy.

“The sale proceeds received by Woodside of US$910M for equity in the Scarborough Joint Venture comprise the purchase price, reimbursed expenditure and escalation,” said Woodside in a statement.

Trading houses

Woodside’s sale and purchase agreement is with a jointly owned subsidiary of LNG Japan, which is a 50-50 joint venture between two Japanese trading houses, Sumitomo Corp. and Sojitz Corp., and a Japanese state-owned agency called the Japan Organization for Metals and Energy Security (Jogmec).

The Scarborough gas field project comprises the Pluto Train 2 joint venture and modifications to Pluto Train 1 to process Scarborough gas.

The venture includes the Scarborough field itself and associated offshore and subsea infrastructure.

The Scarborough field is located 375 kilometres (233 miles) off the coast of Western Australia and the reservoir contains less than 0.1 percent carbon dioxide.

Scarborough gas will be processed at the Pluto LNG facility, where Woodside is currently constructing a second liquefaction Train .

In addition to the sale of a 10 percent non-operating participating interest to Japan LNG, Woodside additionally stated in February 2024 that it had entered into an SPA with the largest Japanese LNG importer and power company, JERA Co. Inc. for a 15.1 percent non-operating participating interest in Scarborough.

Commitment

“LNG Japan’s commitment to the Scarborough Joint Venture is a demonstration of the value our customers place on gas as a long-term source of energy as they navigate the energy transition,” said Woodside Chief Executive Meg O’Neill.

“Completion of the sale to LNG Japan is a significant milestone as we progress toward first LNG cargo from Scarborough targeted in 2026,” O’Neill stated.

“We are also pleased to welcome Japan Organization for Metals and Energy Security’s equity investment,” the CEO added.

“Jogmec’s support reflects the contribution Scarborough gas will make to Japan’s energy security,” she added.

Woodside still holds a 90 percent interest in the Scarborough venture and will remain as operator.

Following completion of the transaction with JERA Woodside’s interest will be 74.9 percent in the Scarborough venture.

After completion of the JERA deal, Woodside estimated that as of 26 March 2024, the Perth-based company’s Scarborough field proved (1P) undeveloped reserves are reduced by 128.7 million barrels of oil equivalent to 1,158.3 million barrels of oil equivalent.

Woodside Energy, the leading supplier of Australian LNG cargoes to North Asia, has signed a sale and purchase agreement with the South Korean state-owned utility Korea Gas Corp. as more Asian nations seek to secure long-term supplies for energy security.

The SPA provides for the supply of around 500,000 tonnes per annum of LNG for a period of 10.5 years on a delivered basis whereby Woodside supplies the shipping.

The supply deals with the Koreans begin in 2026 and will come from Woodside’s portfolio.

“LNG delivered to Kogas under the SPA will be sourced from uncommitted volumes across Woodside’s global portfolio, including the Scarborough Energy Project which is targeting first LNG cargo in 2026,” explained Woodside.

Kogas already receives Australian LNG cargoes from other regional projects such as Gladstone LNG in Queensland.

Queensland LNG

The GLNG plant is operated by Adelaide-based Santos and Kogas is a shareholder along with French major TotalEnergies and Malaysia’s Petronas.

The state-owned Korean utility has been a long-term regional importer from nations like Indonesia and Malaysia as well as Qatar and Oman in the Middle East.

Woodside Chief Executive Meg O’Neill said that the SPA was significant as Woodside’s first long-term supply agreement into Korea, the world’s third-largest LNG market.

She said the agreement reinforced the ongoing contribution of Woodside’s LNG towards the energy security needs of major customers in the region.

“Woodside is pleased to be a long-term supplier of LNG to Kogas, a leading global energy company and one of the world’s largest LNG importers,” said O’Neill.

“This agreement is further demonstration of ongoing robust demand for Woodside’s products from major energy customers in our region,” O’Neill stated.

LNG for power

Kogas President and CEO Choi Yeon-Hye said she was pleased to conclude the SPA with Woodside.

“This SPA has enabled Kogas to enlarge the customer base in the domestic power market, reinforcing our role as a leading natural gas supplier in Korea,” she stated.

“By leveraging this SPA, we look forward to further expanding our business opportunities with Woodside in the LNG industry,” added Choi.

Kogas controls or jointly controls five out of South Korea’s seven import terminals at Incheon, Pyeongtaek, Samcheok, Tong-Yeong and Jeju.

The other two terminals are at Gwangyang and Boryeong and are used respectively by steelmaker POSCO and other utilities.

JERA Co. Inc, Japan’s biggest liquefied natural gas importer and utility company, has agreed to acquire a large stake in the Scarborough gas field development offshore Western Australia from Woodside Energy for US$1.5 billion, giving a financial boost to the Pluto LNG expansion.

Feb 21 (LNGJ) - Woodside Energy said the first three Pluto Train II modules for the Scarborough expansion project have arrived at Karratha in Western Australia. The modules were fabricated at an Indonesian yard by US energy engineers Bechtel and weigh a combined total of more than 4,000 metric tonnes. “The safe and timely arrival of the module is testament to the hard work and dedication of the Woodside team and our lead contractor Bechtel,” said Woodside Chief Executive Meg O’Neill said.

   Woodside said that the modules were three of a total of 51 that would be shipped to the site from the module yard to form Pluto LNG Train II. The second Pluto Train will have nameplate capacity of 5 million tonnes per annum and up to 3 MTPA of LNG will be processed at the existing Pluto Train 1 following modifications to accommodate the Scarborough field’s lean gas. The Pluto expansion is scheduled to ship its first cargo in 2026.

Woodside Energy, the Western Australian LNG plant operator with global oil and gas interests, expects to recognise non-cash, post-tax asset impairments amounting to around US$1.50 billion with US$1.20Bln related to the Shenzi asset, the deepwater oil and gas fields in the Gulf of Mexico, and the remainder for Wheatstone LNG.

Woodside Energy, the leading liquefied natural gas operator in Western Australia, said the “Léopold Sédar Senghor” floating production, storage and offloading (FPSO) unit had safely arrived off the West African state of Senegal for a key oil project.

“This is a significant step toward achieving first production from the Sangomar oil field which is targeted for mid-2024,” said Woodside.

The FPSO’s delivery for the Sangomar oil venture follows the arrival of an FLNG production vessel in November 2023 for a separate project run by UK major BP that will also benefit Senegal as well as its neighbour Mauritania.

Oil output nearer

The Perth-based company said that the arrival of the FPSO, named after the first President of Senegal, from Singapore to its final destination, located 100 kilometres (62 miles) offshore the Sengalese capital Dakar, marked the start of the next phase of the project.

Woodside will now help oversee the commissioning of the FPSO and the hooking up to the 23 production, gas and water injection wells that make up the Sangomar Field Development Phase 1.

Woodside Chief Executive Meg O’Neill said the Sangomar project was advancing to the company’s satisfaction.

“The FPSO arrival brings us closer to first production,” said O’Neill.

“We are proud to be Senegal’s first offshore oil project operator and firmly believe that this project will prove to be important to Senegal’s future development and prosperity,” O’Neill stated.

“In addition to developing Senegal’s energy resources, we have already begun working with the Government of Senegal, local businesses and communities to develop programs that create business opportunities, build local capabilities, foster employment opportunities, and bring broad economic benefits as a result of our operations,” O’Neill explained.

The Woodside CEO also praised the role of the Société des Pétroles du Sénégal (Petrosen),  the national oil and gas company, as a contracting partner in the venture.

The Sangomar Field Development Phase 1 includes the stand-alone FPSO with subsea infrastructure and an expected production capacity of around 100,000 barrels of oil per day.

LNG developments

Senegal is also separately involved in floating LNG joint ventures being developed by BP and Kosmos Energy along with the governments of Senegal and Mauritania in the offshore Greater Tortue Ahmeyim natural gas fields.

Seatrium Group of Singapore converted and delivered an LNG floating production vessel, the “Gimi FLNG”, to be stationed at a nearshore hub located on the Mauritania and Senegal maritime border, and is expected to begin production in 2024 as part of the first phase of the FLNG venture.

The “Gimi FLNG” was converted by Seatrium in a project in partnership with Norway’s Golar LNG from a 1975-built Moss LNG carrier with a storage capacity of 125,000 cubic metres.

It is designed for 20 years of operations on-site without dry docking, with a liquefaction capacity of 2.7 million tonnes per annum and is contracted to operate near shore in 30 metres of water depth.