LNG

Woodside Energy has achieved first gas from its Scarborough reservoir offshore Western Australia, feeding the Pluto LNG terminal, with the first cargo from Train 2 targeted for export in the fourth quarter of 2026.

TechnipFMC, the US oil and gas and LNG project services company, reported a 24 percent increase in second-quarter revenues as profits rose along with orders and the backlog.

Woodside Energy, the operator of the North West Shelf and Pluto LNG plants in Western Australia, has signed a sale and purchase agreement with CPC Corp. of Taiwan for the long-term supply of cargoes.

Santos Ltd, the Australian operator of two liquefied natural gas export plants and a main shareholder in Papua New Guinea LNG assets, has seen its shares surge on take-over speculation, separately involving the Saudi Arabian Oil Company and Abu Dhabi National Oil Company.

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. 

May 14 (LNGJ) - TechnipFMC has been awarded a significant integrated engineering, procurement, construction and installation contract by Woodside Energy to support ongoing offshore gas field production for the Pluto LNG export plant in Western Australia. The award follows TechnipFMC’s integrated front-end engineering and design study for the project.

   The company said it would design, manufacture and install the subsea production system, flexible pipe and umbilicals for the Xena gas field infill well tied back to existing subsea infrastructure previously supplied by TechnipFMC. “We are proud to be delivering a fully integrated project from concept to execution,” said Jonathan Landes, President of Subsea at TechnipFMC.

Western Australian LNG operator Woodside Energy reported quarterly revenues down by nearly a third from lower oil and natural gas prices as projects progressed in LNG in Australia and in oil offshore Senegal in West Africa.

MidOcean Energy, the LNG assets company formed and managed by global infrastructure investor EIG, said Japanese trading house Mitsubishi Corp. had made a strategic investment.

EIG is a leading institutional investor in the global energy and infrastructure sectors with around $23 billion under management and also announced on March 28 that it had completed the acquisition of the portfolio interests in Australia of Tokyo Gas.

Mitsubishi has been an active player in the LNG sector for over 50 years and is involved in 12 projects, including the LNG Canada venture that comes on stream soon in the province of British Columbia.

The Japanese company made the investment In MidOceam to develop its clean-energy portfolio while fulfilling its responsibility as a stable energy supplier to Japan.

EIG’s MidOcean said that Mitsubishi’s investment, the details of which were not disclosed, deepened MidOcean’s blue-chip base and builds on its “significant momentum” since launching in late 2022.

Blue-chip investors

“We are thrilled to have Mitsubishi join as an anchor investor,” said De la Rey Venter, Chief Executive of MidOcean.

“Mitsubishi has been a pioneer of the global LNG industry and has consistently demonstrated its expertise and foresight in identifying valuable opportunities,” Venter added.

“Their investment is a testament to the strong fundamentals of the LNG market and MidOcean’s strategy to create a competitive long-term growth platform in LNG,” stated the MidOcean CEO.

R. Blair Thomas, EIG’s Chairman and CEO, said he welcomed a strategic partnership with a company such as Mitsubishi.

“The world’s energy transition needs are contributing to rapid growth in global LNG demand, and we look forward to continuing to execute on this attractive and important opportunity,” added Thomas.

Tokyo Gas deal

MidOcean’s recent completion of the acquisition of the Tokyo Gas assets in Australia gives it stakes in the Chevron-operated Gorgon LNG, the Pluto LNG project run by Woodside Energy and the Shell-operated Queensland Curtis LNG venture.

As part of the transaction, MidOcean said it would open an office in Perth in Western Australia to support and oversee the projects.

EIG is headquartered in Washington DC and also has offices in Houston, Texas, London, Sydney, Rio de Janeiro, Hong Kong and Seoul.

For the completion of the MidOcean-Tokyo Gas deal Barrenjoey, Barclays and JP Morgan acted as financial advisors to EIG and MidOcean in connection with the transaction.

White & Case acted as legal advisor to EIG and MidOcean.

EIG’s clients include many of the leading pension plans, insurance companies, endowments, foundations and sovereign wealth funds around the world.

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.

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.