Woodside Energy has restarted work on its Scarborough LNG project off the coast of Western Australia. This follows a protest by Greenpeace activists that briefly stopped operations. The company announced the resumption on Monday after two activists were removed from the gas platform on Saturday. Local authorities charged them with interfering with offshore petroleum installations, which can lead to a maximum penalty of 10 years in prison.
Key Details
The Scarborough project is 98% complete and will export liquefied natural gas (LNG) to global markets while also supplying gas domestically. The facility has a budget of $12.5 billion and aims to produce about 8 million tons of LNG each year. Woodside plans to start operations before the end of this year, but the protest may cause delays.
Greenpeace has raised concerns that the project could harm a coral reef system that is home to an endangered whale species. Woodside disputes this claim, stating that its facilities will not interact with the coral ecosystem. A Woodside spokesperson criticized Greenpeace's actions, saying they have led to a costly response and put both the environment and personnel at risk.
Background
The project includes building Pluto Train 2 and modifying Pluto Train 1, along with the Integrated Remote Operations Centre in Perth. The Scarborough facility is part of a larger development tapping into one of Australia's biggest undeveloped natural gas deposits, the Browse project, which is estimated to cost around $34 billion.
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The protest's temporary halt could affect timelines for LNG exports from the Scarborough project, impacting supply in both domestic and international markets. Investors will be watching for updates on the project's status and any potential delays for the first LNG cargo, expected in the fourth quarter of this year.
Based on reporting by: oilprice.com