Woodside move on LNG plant

Woodside will push ahead with studies over its proposed Scarborough LNG plant without the financial support of BHP.

Woodside Petroleum will push ahead with engineering studies over its proposed Scarborough liquefied natural gas plant without the financial support of its joint venture partner BHP.

Woodside yesterday announced it had awarded four contracts for front-end engineering and design (FEED) studies over various components of the Scarborough plan.

But the company also said it would “initially” fund the cost of the studies on its own, with BHP yet to formally agree to the plan.

Woodside is confident that it and BHP are aligned on the development plan for Scarborough, but it wanted to move into FEED studies now so the project can meet its targeted schedule. The retention lease over Scarborough is due to expire on November 1 next year.

Woodside chief executive Peter Coleman said the award of the engineering contracts would support the company’s plans to make an investment decision over Scarborough next year.

“The award of these contracts brings us closer to unlocking the Scarborough resource,” Mr Coleman said. “We want to continue to maintain the momentum that has been generated during 2018 towards a targeted final investment decision in 2020.”

Woodside bought ExxonMobil’s stake in Scarborough last year and has moved it rapidly towards development, with the project central to the company’s plans to return to growth.