WA to secure domgas contracts with Woodside
The McGowan Government has announced the intention to secure domestic gas agreements from Woodside Petroleum and BHP’s newly sanctioned Scarborough project, claiming the project will provide both local industry and community benefits.
An approximate 225 terajoules of gas per day is anticipated to flow into the domestic market as the noted development will include a second LNG train as well as new domestic facilities at Pluto.
"In the coming days, we will execute agreements with the Scarborough and Pluto Train 2 joint ventures that will provide energy certainty for the state and support thousands of local jobs, as well as providing a transition fuel source for our major trading partners," Premier Mark McGowan said.
"It's been estimated Scarborough and Pluto Train 2 will contribute $19 billion to the Australian economy through taxation and boost national gross domestic product by $125 billion to 2063," CME chief Paul Everingham said.
At the conclusion of 2020 the Australian Energy Market Operator gave warning that WA may face a large gas supply shortfall as early as 2029 unless there are new resources commercialised.
The best-case scenario, developed by the Gas Statement of Opportunities, forecast the market well supplied up until 2026, which notably, is the same year Scarborough gas is anticipated to come online.
Andrew Forrest, FMG chairman, has been previously outspoken towards Woodside pursing Scarborough, as he looks to move FMG into the use of green ammonia, electricity, and hydrogen with the goal of decarbonising his mining operations by 2030.