Woodside (ASX:WPL) agrees to sell 49% stake in Pluto Train 2 project

Company News

by Lauren Evans

Energy giant Woodside Petroleum (ASX:WPL) has agreed to sell a 49 per cent stake in Pluto Train 2 to Global Infrastructure Partners (GIP) after entering into a sale and purchase agreement. 

Under the agreement, Woodside will sell of a 49 per cent non-operating participating interest in the Pluto Train 2 joint venture. Pluto Train 2 is a key component of the proposed Scarborough development and includes a new LNG train and domestic gas facilities to be constructed at the existing Pluto LNG onshore facility. The estimated capital expenditure for the development of Pluto Train 2 from the effective date (October 1) is US$5.6 billion. 

The joint venture arrangements will require GIP to fund an additional amount of construction capital expenditure of around US$835 million. Woodside’s joint venture capital contributions will be reduced accordingly. Following completion, Woodside will hold a 51 per cent participating interest in the Pluto Train 2 joint venture and remain as operator.

The effective date of the transaction is October 1, 2021 and completion is expected to occur in January 2022.

“We are very pleased to have GIP joining us in the development of Pluto Train 2, given their impressive credentials and extensive global capability. We are looking forward to a successful, long-term relationship with them," said CEO Meg O’Neill.

“The development of Scarborough gas through Pluto Train 2 will deliver significant value to our shareholders, create thousands of jobs in Western Australia and generate tax revenues for decades to come."

“Pluto Train 2 will be one of Australia’s most efficient LNG trains and with Scarborough gas containing virtually no carbon dioxide, this is an attractive investment in a decarbonising world.”

Shares in Woodside Petroleum (ASX:WPL) are trading 1.8 per cent higher at $22.64.

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