Scarborough Liquefied Natural Gas Project
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| Project at a glance | |
|---|---|
| Project name | Scarborough project |
| Project type | Greenfield |
| Project sector | Natural Gas |
| Project location | Pilbara coast of Western Australia |
| Project cost | USD 12.5 billion |
| Project status | Under construction ( 80% done) |
| Total handling capacity | 8Mtpa annually |
| GDP raise | USD 165.4 billion between 2024 and 2056 |
| First LNG cargo | In the second half of 2026 |
| Owner | Woodside Energy |
| Project Start Date | November 2021 |
| Project Completion Date | The second half of 2026 |
Project Overview
Woodside’s Scarborough Project is a natural gas field located in the Carnarvon Basin, around 375 km off the Pilbara coast of Western Australia (WA). The Project will cut the problem of unemployment in WA by generating thousands of jobs during the entire Project. It will also supply reliable energy to the world.
The Project involves installing a Floating Production Unit (FPU), with eight wells to be drilled in the initial phase and 13 wells over the life of the Scarborough Project. All wells will be tied to a semi-submersible FPU moored in 950 m of water close to the Scarborough gas field.
Pluto Train 1 is expected to generate 3 Mtpa of Scarborough gas, and Pluto Train 2 will generate 5 Mtpa of the Scarborough Project. Thus, the total capacity by the end of the Project will be 8 Mtpa. The Project foresees the delivery of its first LNG cargo in 2026.
Project Background
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The Scarborough Liquefaction Gas Resource in the Commonwealth waters forms a part of the greater Scarborough gas fields, consisting of the Scarborough, North Scarborough, Thebe, and Jupiter Gas Fields.
It focuses on the commercialization of the Scarborough and North Scarborough gas fields through the construction of various subsea, high-rate gas wells tied back to a semi-submersible floating production unit (FPU) moored in 950 m of water close to the Scarborough gas field.
The Scarborough project is an essential part of Woodside’s Burrup Hub Vision for a regional gas hub, which aims to boost economic growth and local employment in Western Australia. Furthermore, the development of the gas fields brings opportunities for future tieback to Scarborough infrastructure.
Project Scope
The Scarborough Energy Project originates with the motive of uprooting gas from the Scarborough gas field in the Carnarvon Basin off the Pilbara coast. It includes developing the offshore field and expanding the onshore Liquefied Natural Gas (LNG) facility. The Project scope comprises the following:
- Offshore Development: The gas field includes a semi-submersible floating production unit (FPU) moored in 950 meters of water close to the Scarborough gas field. At the start, eight wells were drilled, and a total of 13 wells are to be drilled during the Project. A total of 11.1 trillion cubic feet of dry gas is estimated to be present in the Barrow Group Flag sandstone reservoir.
- Trunkline installation: 32-inch gas trunklines for 430 km are installed using pilings to anchor pipelay vessels, trenching, and backfilling (for nearshore only).
- Onshore Expansion: The Scarborough Project expands the existing Pluto LNG facility with Pluto Train 2 to boost the Scarborough gas generation capacity. Pluto Train 1 is expected to generate 3Mtpa of Scarborough gas, whereas Pluto Train 2 will generate 5Mtpa.
- Production capacity: The total production handling capacity is expected to be 8 Mtpa annually. The Project aims to deliver its first LNG in the second half of 2026. It will supply approximately 225 terajoules per day of domestic gas to Western Australia.
- Job creation: The Project will benefit the economy by generating thousands of jobs during the Project's construction and operation.
- Emission Reduction: Some operations will be electrified, methane leaks will be detected, and carbon offset programs will be created.
- Marine protection: Reducing noise, limiting drilling to avoid whale migrations, and developing spill response plans help prevent marine harm.
Woodside Scarborough Project Location
Woodsde’s Scarborough Project is a natural gas field located in the Carnarvon Basin, around 375 km off the Pilbara coast of Western Australia (WA). The Scarborough gas field will be developed through new offshore facilities connected by an approximately 430 km pipeline to a second LNG train at the existing Pluto LNG onshore facility.
Project Cost
The total project cost of the Scarborough Project has increased to USD 12.5 billion, highlighting a USD 8.2 billion Woodside share in the Scarborough Project. The Project has witnessed a 4% jump from the previous cost estimate of USD 12 billion when a Final Investment Decision (FID) was released in November 2021.
Scarborough Pluto Train 1 Modification Project
The Pluto Train 1 modifications involve refining the existing Train 1 facility and the related infrastructure to process LNG from the Scarborough Project at Pluto Train 1. Upon completion of the modification process, the Project will furnish up to 3 Mtpa of Liquefied Natural Gas from Scarborough Energy.
Kellogg Brown and Root (KBR) was selected as the engineering, procurement, and construction management (EPCM) contractor for the execution phase of the Project.
The Project's further equipment is based on modular designs and will fit within the existing pre-disturbed Pluto LNG footprint. New facilities to be installed include a Natural Gas Liquids Unit, Nitrogen Recycle Compressor, Pluto gas custody metering, and a range of modifications to auxiliary facilities.
Scarborough Project Milestone - Pluto Train 2
The arrival of the first three Pluto Train 2 modules for the Scarborough Energy Project at Karratha and Western Australia was a milestone in the Scarborough Energy Project. It will help meet the shoot-up demand for low-cost, low-carbon, reliable energy.
The three modules, fabricated by Bechtel in Indonesia, weigh a combined 4,000 tons and are the first of 51 modules to be shipped to the site from the module yard to form Pluto Train 2.
Pluto Train 2 is the second LNG production train at the existing Pluto LNG onshore facility and will process gas from the offshore Scarborough development.
It is expected to generate 5 million tonnes per annum (Mtpa). Further, domestic gas will be inserted at the facility to increase domestic gas capacity to approximately 225 Terajoules/day.
Investors
| Investors | Role | Interest |
|---|---|---|
| Woodside Energy | Operator and Stakeholder | 74.9% |
| JERA Co., Inc | Japanese power generation company | 15.1% |
| BHP Petroleum pvt Ltd | Joint venture partner | Approximately 26.5% |
| Japan Bank for International Cooperation (JBIC) | Provided project loan for the project | USD 1 billion loan |
Contractors
| Contractors | Role |
|---|---|
| McDermott International | Engineering, procurement, construction, installation, and commissioning (EPCIC) of FPU, including design and fabrication. |
| Subsea Integration Alliance | Engineering, procurement, construction, and installation (EPIC) of subsea pipelines and production systems. |
| Saipem Australia Pty Ltd | Coating, transporting, and installing the export trunkline connecting the Scarborough gas field to the onshore plant. |
| Bechtel | EPC contract of Pluto Train 2, including fabrication and delivery of modules. |
| ABL Group | Marine Warranty Services (MWS) is responsible for construction, transportation, and installation operations. |
| Intecsea Pty Ltd | Export trunkline engineering services. |
| QA Weld Tech | Supply of flowbends and crossovers for the project. |
Saipem’s milestone in the trunkline installation
Woodside awarded the Scarborough Energy Project to Saipem in 2022 as the operator on behalf of the Scarborough Joint Venture, and it includes laying, transporting, and coating the trunkline. The installation of these began in 2023, deploying Saipem’s Castorone.
Saipem has reached a key milestone in the Scarborough Project offshore after completing the trunkline installation with the flagship Castorone vessel.
Once it starts, it will connect the Scarborough gas field in the Carnarvon Basin offshore Western Australia. The trunkline corresponds to the onshore Pluto train 2. In approximately 12 months, Saipem installed a 433 km pipeline and 36,000+ pipeline lengths at a depth of up to 1,400 meters.
The Project's completion will enable us to meet the demands for lower carbon and reliable energy the world needs today and tomorrow.
Woodside Scarborough Project Update
The Scarborough and the Pluto Train 2 Project is completed at 80%. However, the Chief Executive, Mega O’Neil, revealed that the Scarborough LNG Megaproject in Australia will operate in the second half of 2026.
The operators planned the first Liquefied Natural Gas from the Scarborough development in early 2026. Its expected nameplate capacity is 8 million tonnes per annum. The timelines have been changed, and the LNG facility will start in the second half of 2026.
Benefits of the Scarborough Project
The Scarborough Energy Project will benefit West Australia in tremendous ways. It will help the economy, the environment, and the employment sectors. Below is a detailed description of the benefits of the Scarborough Project.
Economic Sector
- GDP Level: The Scarborough Project will boost Australia’s GDP by approximately USD 165.4 billion between 2024 and 2056. ACIL Allen estimates the Project will add $5.4 billion annually to Australia's GDP.
- Real Income boost: The Scarborough Energy project will raise Australia's real income by approximately USD 129.5 billion between 2024 and 2056. Around USD 71.5 billion income will be kept with Western Australia.
- Government Income: The Project will generate around USD 52.8 billion in taxation and royalty payments to the Commonwealth and the State Government between 2024 and 2056.
Employment Sector
- Job creation: The Scarborough Project will generate 3,000+ jobs in Western Australia during the construction phase of the Project.
Environment Sector
- Carbon Emmision: The Scarborough gas holds less than 0.1% carbon dioxide. It will be one of the lowest carbon-intensity sources of LNG delivered to North Asian Markets.
- Cleaner Energy Production: Compared to coal, LNG will release half the CO2 per megawatt-hour, making it the lowest carbon source of LNG globally for Woodside's North Asian customers.
Conclusion
Woodside’s Scarborough Energy Project is a natural gas infrastructure project that includes installing a floating production unit (FPU), with eight wells drilled at the start and thirteen wells during the project's life. It includes the modification of Pluto Train 2 and the modification of Pluto Train 1 at the existing Train 1 facility. On completion, the train will generate 8Mtpa of LNG from the Scarborough field.
The Project will benefit the economy, environment, and the employment sector of Western Australia. It will generate 3000+ jobs during the construction phase. It will raise Australia’s GDP by USD 165.4 billion between 2024 and 2056. It would also be one of the lowest carbon sources of LNG globally for Woodside's North Asian customers.
FAQ’S
When is the Pluto Train 2 Construction start date
The construction of the Pluto Train 2 started in August 2022 at the Karratha site in Western Australia.
What is the status of the Scarborough Project?
The Woodside Scarborough Energy Project is 80% done.
Who owns the Scarborough Project?
Woodside operates the Scarborough Energy Project and has a 74.9% participating interest in the Scarborough field. LNG Japan holds a 10% interest, and JERA holds 15.1% in the Scarborough Joint Venture.
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