July 24, 2024 [LNG Prime]- Woodside’s Scarborough and the second Pluto LNG train projects were 67 percent complete at the end of the second quarter. Woodside also said that the project’s price tag rose 4 percent to $12.5 billion.
The Perth-based LNG player, which just announced that it will buy Driftwood LNG developer Tellurian, revealed this in its second-quarter results report on Tuesday saying that a cost and schedule review was performed for the integrated Scarborough energy project.
The schedule remains unchanged, with first LNG cargo targeted for 2026.
However, the revised total project cost estimate is $12.5 billion ($8.2 billion Woodside share), a 4 percent increase from the previous cost estimate at FID of $12 billion, it said.
“The cost increase is significantly driven by scope maturation of the Pluto Train 1 modifications project,” Woodside said.
In November 2021, Woodside took a final investment decision on the Scarborough and Pluto LNG Train 2 developments and the project was 62 percent complete as of the end of the first quarter this year.
The project also includes new domestic gas facilities and modifications to the first train.
Woodside’s Pluto LNG terminal currently has one train with a capacity of 4.9 mtpa and Woodside and US engineering and construction firm Bechtel started building the second Pluto train in 2022.
Pluto Train 2 will get gas from the Scarborough gas field, located about 375 km off the coast of Western Australia, through a new trunkline long about 430 km.
29 modules delivered
In February, Woodside received the first three of 51 modules from Indonesia at the Pluto Train 2 project site in Western Australia.
Woodside said in the update that 29 Pluto Train 2 modules have been delivered to the site, with 25 modules set in position at the end of the quarter and site works continuing to ramp up.
Also, the company said that all major engineering reviews for Pluto Train 1 modifications have been completed and about 80 percent of materials and equipment have been ordered.
Mobilization of personnel to both the module yard and the Pluto site started.
Moreover, fabrication of the floating production unit (FPU) hull and topsides progressed, while the living quarters module was installed on the topsides, which has achieved structural completion.
Installation and testing of the three flowlines was also completed.
Trunkline installation has transitioned from the 36” to 32” pipe and is now more than 50 percent complete, according to Woodside.
Two development wells have been drilled, with one well completed and the other planned to be completed in the second half of 2024, it said.
Lower revenue and production
Woodside reported lower revenue and production in the second quarter of this year compared to the same period in 2023.
The company said its sales revenue dropped 2 percent year-on-year to $3.03 billion, and it rose 2 percent compared to $2.96 billion in the prior quarter.
Woodside said revenue rose compared to the prior quarter primarily due to timing of Pluto cargoes
partially offset by lower realized prices.
Quarterly production of 44.4 MMboe (488 Mboe/day), was down 1 percent from the prior quarter due to planned maintenance activities, weather impacts at North West Shelf, and unplanned outages at Wheatstone and Julimar, partly offset by higher seasonal demand at Bass Strait and first oil at Sangomar, it said.
Production also decreased from 44.5 MMboe in the same quarter last year.
Full year production guidance remains unchanged.
Average LNG price drops
Woodside said its average LNG produced price reached $9.6 per MMBtu in the the second quarter, down compared to $10.4 per MMBtu in the prior quarter and $10.9 per MMBtu in the same quarter in 2023.
These realized prices include the impact of periodic adjustments reflecting the arrangements governing Wheatstone LNG sales, the firm said.
LNG traded price, which excludes any additional benefit attributed to produced LNG through third-party trading activities, was at $9.1 per MMBtu in the second quarter.
This compares with $9.1 per MMBtu in the first quarter and $11 per MMBtu in the same quarter last year.
Woodside sold 45 percent of produced LNG at prices linked to gas hub indices in the quarter (34 percent year to date).
This represents 22 percent of Woodside’s total equity production (16 percent year to date), it said.
Also, Woodside achieved record trucked LNG deliveries of 525 TJ during the quarter to customers in northern Western Australia.
The company has now delivered more than 2000 trailers of LNG since the start of operations at the Pluto LNG truck loading facility, it said.
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