Woodside and BHP have agreed on the tolling price for processing gas from the Scarborough offshore field at the Pluto LNG facility on Western Australia’s Burrup Peninsula.
The agreed tolling price is complemented by non-binding heads of agreement on other tolling terms, with Woodside noting in its statement that the tolling price is valid March 31, 2020.
The toll is based on BHP maintaining no more than a 25 percent interest in Scarborough (WA-1-R) up to final investment decision (FID), subject to BHP’s standard pre-emption rights.
Woodside CEO Peter Coleman said the agreement on the tolling price for Scarborough was another step towards the realization of the proposed Burrup Hub.
“This agreement on tolling price, together with the increase in Scarborough gas resources announced earlier this month, provides a compelling and aligned basis for BHP and Woodside to finalize the required conditional binding agreements by the end of the first quarter of 2020.
“It is a key milestone as we target a go-ahead for the development of the high-quality Scarborough gas resource through an expanded Pluto LNG facility. The joint venture is now in a strong position to proceed to FID in the first half of next year,” he said.
Scarborough gas would initially be processed on a deep-water floating production unit and transported through an approximately 430 km pipeline to be processed at the Pluto LNG facility. First LNG from the proposed development is targeted in 2024, Woodside said.