The Scarborough gas field is located off the northwest coast of Western Australia in Commonwealth waters. Natural gas produced from the Scarborough field will be transported via a subsea pipeline to the Pluto LNG facilities for the production of LNG. The composition of the Scarborough gas is very low in CO2, at less than 0.1%.
The annual LNG production expected from the Project is approximately eight million tons per annum (Mtpa) at its peak rate. JERA will off-take an equity share of approximately 1.2 Mtpa of LNG cargoes. The final investment decision for the Project was made in November 2021, and the first cargo is targeted for 2026.
As part of the broader strategic relationship, JERA also entered into a non-binding head of agreement (HOA) with Woodside, for the sale and purchase of LNG from its portfolio. Under the agreement, JERA intends to purchase six cargoes (approximately 0.4 Mtpa) of LNG from Woodside for 10 years from 2026 onwards.
In addition, JERA signed a non-binding memorandum of understanding (MoU) with Woodside to explore collaboration in decarbonization initiatives. Moving forward, JERA will be evaluating potential collaboration with Woodside in areas such as ammonia, hydrogen, and Carbon Capture and Storage (CCS).
In Asia, there is a strong need to balance the stable supply of energy to support economic growth with decarbonization. Gas-fired power generation, which has lower CO2 emissions than other fossil fuel-based power generation, has a complementary relationship with renewable energy, which has an unstable power output. It is also an indispensable energy source for promoting energy transition. As energy demand is expected to grow, the importance of securing a stable supply of competitive LNG increases, and LNG produced from Australia, located close to Asia, including Japan, is expected to play an important role.
JERA will contribute to solving the world’s energy issues through achieving sustainability for a cleaner world, affordability for lower prices, and stability of supply simultaneously. This will be accomplished by utilizing the company’s extensive experience in the LNG value chain business, which has been cultivated over many years.