Australian Resources and Energy Group AREEA congratulates Woodside Energy on its final investment decision to press ahead with the biggest oil and gas development to be built in Australia in a decade.

The company announced it had approved the its $16.5 billion Scarborough project and the associated upgrade of its Pluto liquefied natural gas facility near Karratha, 1,600km north of Perth.

The project includes constructing a 430-kilometre pipeline, connecting the Scarborough gas field to the mainland, along with a second production train at the Pluto LNG processing plant.

At the peak of construction, as many as 3,200 jobs are expected to be created, with first production forecast for 2026.

Woodside CEO Meg O’Neill said approving the development of the world-class Scarborough gas resource is a landmark achievement for Woodside, setting the company on a transformative path.

“Scarborough will be a significant contributor to Woodside’s cash flows, the funding of future developments and new energy products, and shareholder returns,” she said.

“This capital efficient development leverages Woodside’s existing infrastructure and our proven expertise in project execution. The contracting model, development concept and execution strategy have been designed to reduce cost risk and protect shareholder value.

“The Scarborough reservoir contains only around 0.1% carbon dioxide, and Scarborough gas processed
through the efficient and expanded Pluto LNG facility supports the decarbonisation goals of our customers in
Asia.

“The final investment decision is underpinned by quality customer support with approximately 60% of
Scarborough capacity contracted, including domestic gas for the proposed Perdaman urea project.

“Developing Scarborough delivers value for Woodside shareholders and significant long-term benefits locally
and nationally, including thousands of jobs, taxation revenue and the supply of gas to export and domestic
markets for decades to come,” she said.

Minister for Resources and Water, Keith Pitt, csaid bringing this project to fruition will provide a significant boost to jobs and the economy.

“It is a great achievement as the world emerges from COVID and the demand for our gas and resources continues to grow,”  Minister Pitt said.

“The US$12 billion project is a real shot in the arm for the industry, for Western Australia and for the nation.

“This is a major vote of confidence in the sector and demonstrates that, despite the claims and protestations of activists, that there continues to be a bright future for our gas and oil industries.”

The Scarborough Project comprises a $5.7 billion development of the offshore gas field and associated pipeline infrastructure and $6.3 billion onshore for the new LNG train at Pluto.

The Scarborough Joint Venture comprises Woodside Energy Scarborough Pty Ltd (73.5%) and BHP
Petroleum (Australia) Pty Ltd (26.5%).