- Woodside Petroleum (WPL) will sell a 49 per cent stake in the Pluto Train 2 joint venture, part of its wider Scarborough development, to Global Infrastructure Partners (GIP)
- The ASX 200-lister will retain a 51 per stake in Pluto Train 2, which includes a new LNG train and domestic gas facilities being built at the existing Pluto LNG onshore facility in WA
- The estimated capital expenditure for the development is US$5.6 billion (A$7.64 billion) and GIP will fund 49 per cent of that amount plus US$835 million (A$1.14 billion)
- WPL says the agreement, which is due to be completed in January, is an important milestone as the company closes in on a Final Investment Decision for Scarborough
- Woodside shares are up 1.66 per cent at $22.62 each
Woodside Petroleum (WPL) will sell a 49 per cent stake in the Pluto Train 2 joint venture to Global Infrastructure Partners (GIP).
Pluto Train 2 forms part of the energy giant’s wider Scarborough development in WA and includes a new LNG train and domestic gas facilities being built at the existing Pluto LNG onshore facility.
Under this new deal with GIP, Woodside will retain the majority 51 per cent stake in the JV and also its status as operator.
In exchange, GIP will pay for its 49 per cent of the US$5.6 billion (A$7.64 billion) estimated capital expenditure for the development, along with an extra US$835 million (A$1.14 billion).
The agreement is subject to a number of conditions, including provisions for GIP to be compensated for exposure to additional Scope 1 emissions above agreed baselines.
Woodside CEO Meg O’Neill welcomed GIP to the JV and said she expected the deal to close early next year.
“We are very pleased to have GIP joining us in the development of Pluto Train 2, given their impressive credentials and extensive global capability,” Ms O’Neill said.
“GIP’s investment will help fund the expansion of the world-class Pluto LNG facility. The LNG supplied from the expanded Pluto facility will assist our customers to achieve their decarbonisation goals through the energy transition.”
Ms O’Neill added that GIP’s investment was an important milestone as the company closes in on a Final Investment Decision for Scarborough.
“The sale of the interest in Pluto Train 2 is a significant milestone as we progress towards a final investment decision on our Scarborough development, further de-risking this globally competitive investment,” she said.
“The development of Scarborough gas through Pluto Train 2 will deliver significant value to our shareholders, create thousands of jobs in Western Australia and generate tax revenues for decades to come.”
Shares in Woodside Petroleum were up 1.66 per cent at $22.62 each as of midday on Monday.