Australian oil and gas giant Woodside has signed a $1 billion loan agreement with the Japan Bank for International Cooperation (JBIC) to support the development of Scarborough gas project offshore Australia.
The loan agreement further strengthens Woodside’s balance sheet, providing diversity of funding and liquidity.
It follows a memorandum of understanding signed by Woodside and JBIC in November 2022 aimed at securing a stable supply of energy for Japan and to assist in achieving its decarbonization goals.
The Scarborough energy project is in on schedule for first LNG cargo in 2026. Work at the Pluto LNG facility is proceeding with the ongoing arrival and installation of the Pluto Train 2 modules on site in Karratha, Western Australia.
The installation of the subsea infrastructure and the drilling program continues while the floating production unit’s living quarters have been installed on the topsides.
The signing follows the previously announced sale of two non-operating participating interests in the Scarborough Joint Venture to JERA (15.1%, completion subject to conditions precedent) and LNG Japan2 (10%, since completed in March 2024).
Woodside CEO Meg O’Neill said the loan reflected the longstanding relationship between the two companies and ongoing confidence from Japanese investors in Woodside’s Australian liquefied natural gas (LNG) projects.
“JBIC has supported all of Woodside’s milestone Australian projects including the North West Shelf, Pluto LNG and now Scarborough. It is therefore fitting that we have executed this agreement in the same week that Woodside celebrates 35 years of secure and reliable LNG exports to Japan.
“Investment in new Australian LNG supply, like Scarborough, can help Japanese customers meet their energy security needs while also supporting regional decarbonization goals,” O’Neill said.