Scarborough

Location

The Scarborough gas field is located in the Carnarvon Basin, approximately 375 kilometers off the Pilbara coast of Western Australia. It is situated within production licences WA-61-L and WA-62-L.

Discovery and History

The Scarborough gas field was discovered in 1979. Over the years, it has undergone several appraisal campaigns, with significant resource volume increases following integrated subsurface studies and seismic reprocessing. By December 2021, the best estimate of technically recoverable gas was 11.9 trillion cubic feet (Tcf).

Ownership and Operatorship

Woodside Energy Group holds 100% ownership and operatorship of the Scarborough field, following its merger with BHP in 2022. However, other companies such as Japan Oil, Gas and Metals National, Sojitz, and Sumitomo also have participating interests in the project.

Development Plan

The Scarborough Energy Project involves several key components:

• Offshore Facilities: The project includes the installation of a floating production unit (FPU) with eight wells drilled in the initial phase and a total of 13 wells over the life of the field. The FPU is a semi-submersible unit moored in 950 meters of water close to the Scarborough gas field.
• Pipeline: A 433-kilometer gas trunkline connects the offshore Scarborough gas field to the onshore Pluto LNG processing facility in Karratha. The installation of this trunkline was completed in October 2024.
• LNG Processing: The gas will be processed through Pluto Train 2, a new LNG train at the existing Pluto LNG onshore facility. Pluto Train 2 will process approximately 5 million tonnes per annum (Mtpa) of Scarborough gas, while the existing Pluto Train 1 will process up to 3 Mtpa.

Production and Capacity

• The project is expected to produce around 8 Mtpa of LNG, with a domestic gas commitment of 225 terajoules per day (TJ/d).
• Production is forecast to begin in 2026 and peak in 2027, with the field expected to continue production until it reaches its economic limit in 2046.

Environmental and Emissions Considerations

• Woodside is committed to reducing the project's direct greenhouse gas (GHG) emissions to as low as reasonably practical through energy efficiency measures in design and operations. The company has set targets to achieve a 30% emissions reduction by 2030 and net zero emissions by 2050 across the entire project, including Pluto Train 2.
• The Scarborough gas processed through Pluto Train 2 is expected to be one of the lowest carbon intensity sources of LNG delivered into Asian markets.

Economic Impact

• The project is estimated to add more than A$50 billion ($33.7 billion) in direct and indirect taxes to the Australian economy over its lifespan.
• It will create over 3,000 jobs during the construction phase and generate or sustain an average of 600 jobs throughout its operational phase.

Project Status and Milestones

• As of the latest updates, the project is almost three-quarters complete (excluding Pluto Train 1 modifications) and is on track to deliver its first LNG cargo in 2026.
• Key milestones include the completion of the FPU topsides and the installation of the 433-kilometer trunkline.

Contractors and Partners

• The project involves several key contractors, including Eni, Schlumberger, McDermott International, Subsea 7, and AtkinsRealis Group for design and engineering. Other contractors include Chiyoda, ABL Group, Civmec, and Campbell and Associates.

Funding

• In May 2024, Woodside Energy secured a $1 billion loan agreement with the Japan Bank for International Cooperation (JBIC) to support the development of the Scarborough Energy Project. Additionally, JERA and LNG Japan have acquired stakes in the project.

Challenges and Considerations

• Despite its promising outlook, the project faces potential challenges, including environmental approval issues and the pressure to perform given the reliance on it for future domestic gas supply in Western Australia.