Australia’s Woodside has completed the sell-down of a 49% non-operating interest in the Pluto Train 2 joint venture to Global Infrastructure Partners (GIP).
Estimated to cost $5.6bn, the Pluto Train 2 is an important component of the Scarborough development, in Western Australia. It will include a new LNG train, and the construction of domestic gas facilities at the existing Pluto LNG onshore facility.
The deal closed approximately two months after Woodside signed the sale agreement with GIP. The Pluto Train 2 joint venture then made the final investment decision for the project.
The investment decision was announced at the same time as the FID for the Scarborough development, in Western Australia.
As per the joint venture arrangements, GIP is entitled to fund its 49% share of project capital expenditure. This will be in addition to the construction expenditure of approximately $822m.
Woodside CEO Meg O’Neill said: “GIP brings established, global capabilities to the Pluto Train 2 joint venture, which will support the delivery of a world-class project.
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“The development of Scarborough gas through Pluto Train 2 is expected to deliver significant value to our shareholders, create thousands of jobs, and deliver energy to domestic and international customers for decades to come.”
GIP now owns a 49% stake in the Pluto Train 2 joint venture while Woodside Burrup Train 2 A owns the remaining 51% stake.
The Pluto LNG expansion project includes the construction of the Pluto Train 2, associated domestic gas processing facilities, and supporting infrastructure and modifications to the Pluto Train 1 to enable the processing of Scarborough gas.
According to the Woodside website, the Pluto Train 2 will process nearly five million tonnes per annum of natural gas, sourced from the Scarborough field, located in the Carnarvon basin.
Earlier this month, Woodside awarded a contract to McDermott to build the floating production unit (FPU) for the Scarborough project.