Skip to main content

Woodside and BHP agree gas tolling price

Published by
Tanks and Terminals,


Woodside and BHP have agreed the tolling price for processing gas from the Scarborough offshore field at the Pluto LNG facility on Western Australia’s Burrup Peninsula. The tolling price is valid to 31 March 2020.

The agreed tolling price is complemented by a comprehensive, non-binding heads of agreement on other tolling terms. The toll is based on BHP maintaining no more than a 25% interest in Scarborough (WA-1-R) up to final investment decision (FID), subject to BHP’s standard pre-emption rights.

Woodside CEO Peter Coleman said the agreement on the tolling price for Scarborough was another significant step towards the realisation of the proposed Burrup Hub.

“This agreement on tolling price, together with the increase in Scarborough gas resources announced earlier this month, provides a compelling and aligned basis for BHP and Woodside to finalise the required conditional binding agreements by the end of the 1Q20.

“It is a key milestone as we target a go-ahead for the development of the high-quality Scarborough gas resource through an expanded Pluto LNG facility. The joint venture is now in a strong position to proceed to FID in the first half of next year,” he said.

Scarborough gas would initially be processed on a deep-water floating production unit and transported through an approximately 430 km pipeline to be processed at the Pluto LNG facility. First LNG from the proposed development is targeted in 2024.

Read the article online at: https://www.tanksterminals.com/terminals/18112019/woodside-and-bhp-agree-gas-tolling-price/

You might also like

Catalysts 2019

Catalysts 2019

Catalysts 2019 is an online conference for professionals in the downstream sector. Since this is a completely virtual conference, you can join us from anywhere in the world, absolutely free. Register for free today »

 

StocExpo 2020 unveils programme

StocExpo 2020 will focus on critical issues such as sustainability, the impact of energy alternatives, and emerging markets.

 
 

Embed article link: (copy the HTML code below):