Jera takes 15% of Scarborough gas JV in $1.4-billion deal

JERA takes 15% of Scarborough gas JV in $1.4-billion deal


PILBARA, February 23, 2024 – Japanese utility JERA has signed a binding sale and purchase agreement for a 15.1% non-operating participating interest in Woodside Energy’s Scarborough gas and LNG project in Australia, Woodside announced on Friday.

The deal closed for about USD 1.4 billion, which includes the purchase price of approximately USD 740 million and reimbursement to Woodside for expenditures incurred from the transaction effective date of 1 January 2022.


The transaction also includes a non-binding heads of agreement for the sale and purchase of six LNG cargoes per year for 10 years starting in 2026, as well as a non-binding agreement for collaboration on potential opportunities in ammonia, hydrogen, carbon management technology and carbon capture and storage.

“Scarborough is a world-class project which will provide reliable energy for our customers in the Asian region, including in Japan,” said Woodside CEO Meg O’Neil. “We are also looking forward to exploring new energy and business opportunities alongside JERA to further our shared ambitions to develop new energy value chains between Australia and Japan.”

The Scarborough field is located about 375 kilometres off the Pilbara coast of Western Australia. Production is projected at about 8 million tonnes per year, with the first LNG cargoes expected out in 2026.

This transaction follows the sale in August 2023 of a 10% participating interest to LNG Japan for USD 500 million. Woodside will continue to operate the asset.