PERTH (miningweekly.com) – Energy major Woodside on Wednesday announced that the Scarborough joint venture (JV) had received an offer for the pipeline licence to construct and operate the Scarborough pipeline in Commonwealth waters.

Approval has also been granted for the Scarborough field development plan (FDP), enabling Woodside to start petroleum recovery operations from petroleum production licences WA-61-L and WA-62-L.

These milestones follow final investment decisions made in November 2021 to approve the $12-billion Scarborough and Pluto Train 2 developments. Woodside’s share of investment in these projects will amount to $6.9-billion.

Scarborough gas processed through Pluto Train 2 will be one of the lowest carbon intensity sources of liquefied natural gas (LNG) delivered to customers in north Asia, with first LNG cargo targeted for 2026.

Woodside CEO Meg O’Neill said the pipeline licence and field development plan were among the final primary Commonwealth and Western Australian state government approvals required to develop the Scarborough resource.

“Developing Scarborough delivers value for Woodside shareholders and significant long-term benefits locally and nationally, including thousands of jobs, taxation revenue and energy security here and abroad.

“The Scarborough reservoir contains only 0.1% carbon dioxide, and Scarborough gas processed through the efficient and expanded Pluto LNG facility supports the decarbonisation goals of our customers in Asia,” she said.

Federal Resources Minister Keith Pitt said on Wednesday that the approvals were another important step forward for the vitally important project.

“The approval for a pipeline licence through state and Commonwealth waters along with the Scarborough FDP are significant for the $12-billion project, which will provide a huge jobs and economic boost for WA and the nation,” Pitt said.

“Apart from unlocking enormous gas reserves, it’s estimated the project will have a peak construction workforce of over 3 000 and 600 jobs once it’s operational, including around 230 in the Pilbara.

“Given the current uncertainty around the world, and an energy crisis throughout Europe, it’s projects like this that build Australia’s capacity to ensure long-term energy and national security,” Pitt said.

“It will also support our international neighbours to secure their own energy needs. It’s a key reason the Coalition government is such a strong supporter of our oil and gas sector, which will continue to contribute to jobs and economic growth across the country for decades to come.”

Development of Scarborough will include the installation of a floating production unit with eight wells drilled in the initial phase and 13 wells drilled over the life of the Scarborough field. The gas will be transported to Pluto LNG through a new approximately 430 km trunkline.