A DEEPER LOOK INTO THE SCARBOROUGH AND PLUTO TRAIN 2 PROJECT

Scarborough is a natural gas resource in Western Australia that will play a key role in helping neighbouring Asian countries to take action on emissions reduction and meet increasing energy demand.

• 8 MTPAProject capacity LNG + domestic gas (100% of project)
• US$12 billionCapital expenditure in WA
• 2026Target first LNG cargo

OVERVIEW

Scarborough and Pluto Train 2

The Scarborough gas resource is located in the Carnarvon Basin, approximately 375 km west-north-west of Karratha in Western Australia. The Scarborough gas resource will be developed through new offshore facilities connected by an approximately 430 km pipeline to a proposed second LNG train (Pluto Train 2) at the existing Pluto LNG onshore facility.  

The proposal is to initially develop the estimated 11.1 trillion cubic feet (100%) of dry gas with eight subsea, high-rate gas wells, and thirteen wells drilled over the life of the Scarborough field, with all wells tied back to a semi-submersible floating production unit (FPU) moored in 950 m of water close to the Scarborough field. Approximately five million tonnes per annum (Mtpa) of Scarborough gas will be processed through Pluto Train 2, with up to 3 Mtpa processed through the existing Pluto Train 1. 

“It’s our priority to ensure the benefits of Scarborough are shared amongst Western Australians and used to fund the next steps in our energy transition. The economic benefits to WA are significant and the energy that is produced can play an important role globally.

Meg O’Neill, CEO and Managing Director

Working with Woodside

The development of Scarborough and Pluto Train 2 will provide a boost to WA, growing jobs and bringing work through the supply chain.

Woodside is working closely with our key contractors to maximise opportunities for local, regional and WA businesses across the supply chain for Scarborough. The majority of direct opportunities for Pluto Train 2 will be realised in WA, including Indigenous participation opportunities, with firm commitments to support skills development and training for Indigenous and non-Indigenous residents in the Pilbara and Gascoyne regions to meet employment and supplier opportunities arising from the development.

https://www.woodside.com.au/careers

Managing their impacts

Woodside is well placed to be a part of the global energy transition. Their gas can help reduce emissions, displacing more intensive energy sources such as coal and biomass, while enabling customers to deliver affordable energy and climate action. Woodside recognise that strong environmental performance is essential to their success and continued growth.

Scaeborough’s role in the energy transition

The Scarborough development will significantly contribute to Woodside’s cash flow, enabling us to take forward a range of new energy opportunities and thrive through the energy transition. As the world transitions towards net zero and the use of renewables continues to grow, Scarborough will play a key role in supporting those countries that still lack access to affordable and reliable energy. More than half the world’s population lives in Woodside’s target market regions and all of Woodside’s principal target LNG markets are in countries that have committed to net zero and currently have a heavy reliance on coal to meet their energy needs. Their customers are using LNG as part of their plans to meet their emissions goals – by replacing coal, or firming up renewables, or in hard-to-abate sectors. Scarborough will be one of the lowest carbon sources of LNG globally that can be delivered to North Asian customers.

Climate Report 2021

Managing emissions at Scarborough

Woodside believes that natural gas will be an important part of the solution to meet global energy demand and reducing GHG concentrations by displacing higher emission-intensive fuel sources. Independent expert analysis* shows Woodside’s Australian growth projects, including Scarborough, could avoid 650 Mt of CO₂-equivalent emissions between 2026 and 2040 by replacing higher emission fuels in countries that need our energy. This means for every tonne of GHG emitted in Australia from our projects, this equates to about 4 tonnes in emissions reduced globally. Woodside will reduce Scarborough’s direct GHG emissions to as low as reasonably practical by incorporating energy efficiency measures in design and operations. Further information on how this is being achieved is included in the Scarborough Offshore Project Proposal , sections 4.5.4.1 and 7.1.3.

We’ve also set clear targets at Pluto, our world-class natural gas facility, to put us on track to net zero emissions by 2050. We have contemporised our plan on how we will reduce emissions (the Pluto Greenhouse Gas Abatement Program) with a low-carbon future in mind. We are targeting emissions reductions in line with our corporate commitments of 30% by 2030.

*Comparative Life Cycle Assessment: Browse and Scarborough (2020). Environmental Resources Management, Australia (critically reviewed by CSIRO). 

Read more:

Our approach to climate change
Pluto LNG Facility Greenhouse Gas Abatement Program
Pluto LNG Facility Greenhouse Gas Abatement Program Factsheet

Environmental management

As part of the Scarborough development, an Offshore Project Proposal (OPP) has been accepted by NOPSEMA in accordance with the requirements of the Offshore Petroleum and Greenhouse Gas Storage (Environment) Regulations 2009 (Environment Regulations), and associated guidelines.

The OPP will be implemented by ensuring that all petroleum activities are within the scope of the accepted OPP, and the adoption of controls and environmental performance outcomes specified in the OPP in any future petroleum activity Environment Plans (EPs).

Woodside has developed the Environmental Management Implementation Approach for Scarborough, which consists of:

• managing activities in accordance with existing fit-for purpose systems, practices and procedures under the Woodside Management System
• identifying key roles and responsibilities for Woodside and contractor personnel in relation to the implementation and management of Environmental Performance Outcomes (EPOs) for Scarborough
• developing plans and procedures for emergency preparedness and response for all future petroleum activities
• monitoring of EPO implementation through controls, environmental performance standards and associated measurement criteria specific to the activity for which an EP is being developed
• undertaking environmental performance audits
• reporting on the environmental performance of the project to NOPSEMA

managing changes to the OPP concerning the activity scope, understanding of the environment, and potential new advice from external stakeholders.

Environmental management approach

Scarborough Economic Impact

Consultants ACIL Allen has found that the proposed Scarborough development (during construction and over its productive life) is expected to result in a significant direct contribution to the Australian economy through capital and operational spending, employment, taxation payments, and exports. The majority of these direct impacts will be realised in Western Australia including in the Pilbara region.

Whats Next?

Our next project deep dive is the West Musgrave project, keep an eye this week.

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The Aussie

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