Australia’s Woodside to sell 10% stake in Scarborough to LNG Japan for $500 million

(Reuters) – Woodside Energy Group said on Tuesday it had entered a deal with LNG Japan to sell a 10% participating interest in its $12 billion Scarborough liquefied natural gas project in Australia for $500 million.

As part of a broader strategic relationship, Woodside and LNG Japan, which is a 50:50 joint venture between Sumitomo Corporation and Sojitz Corporation, also entered an agreement for the sale and purchase of 12 LNG cargoes per year for 10 years, starting 2026, the company said.

The proposed Scarborough plant is Woodside’s biggest growth project, and since merging with BHP in 2022, the company holds 100% ownership.

Following completion, Woodside will hold a 90% interest in the Scarborough joint venture and remain as operator.

Woodside also said that it had entered into deals with Sumitomo and Sojitz to collaborate on global opportunities in new energy, which could include ammonia, hydrogen, among others.

(Reporting by Himanshi Akhand in Bengaluru; Editing by Subhranshu Sahu and Rashmi Aich)