Australian energy company Woodside has signed a $1bn (A$1.5bn) loan agreement with the Japan Bank for International Cooperation (JBIC) to fund its Scarborough Energy Project in Western Australia.  

The deal was finalised in Tokyo, with Woodside CEO Meg O’Neill and JBIC deputy governor Kazuhiko Amakawa formalising the agreement.  

The deal will also bolster Woodside’s balance sheet by diversifying its funding sources and enhancing liquidity. 

The Scarborough Energy Project, which is on track for its first liquified natural gas (LNG) cargo in 2026, includes the Scarborough Joint Venture, the Pluto Train 2 Joint Venture, and modifications to Pluto Train 1 for processing Scarborough gas.  

The project is key for the development of the Scarborough gas field, situated in the Carnarvon Basin, about 375km from the Pilbara coast. 

According to Woodside, the development plan for the Scarborough gas field involves new offshore facilities, including a floating production unit (FPU) moored in 950 metres of water, with eight wells initially and an additional 13 over the field's lifespan.  

A 430km pipeline will connect these facilities to Pluto Train 2 at the existing Pluto LNG onshore facility. 

The project is set to process approximately five million tonnes per annum (mtpa) of gas through Pluto Train 2, with up to 3mtpa through the existing Pluto Train 1.  

This agreement follows a memorandum of understanding signed in November 2022 between Woodside and JBIC to ensure a stable energy supply for Japan and supporting its decarbonisation goals. 

Construction at the Pluto LNG facility is advancing, with the ongoing installation of Pluto Train 2 modules in Karratha, Western Australia.  

Meanwhile, the subsea infrastructure and drilling program are progressing, and the FPU's living quarters have been mounted on the topsides. 

O’Neill said: “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 decarbonisation goals.” 

This financing move comes after Woodside's recent divestment of non-operating interests in the Scarborough joint venture to JERA – 15.1%, pending completion conditions, and LNG Japan – 10%, which was finalised in March 2024.