The sale is for a 49 per cent non-operating participating interest in Woodside’s LNG plant expansion and development.
Pluto Train 2 is a key component of the proposed Scarborough development and includes a new LNG train and domestic gas facilities, to be built at the existing Pluto LNG onshore facility.
In addition to GIP’s 49 per cent share of capital expenditure, the joint venture agreement requires GIP to fund an additional portion of construction capital expenditure of around US$835 million, with Woodside’s capital contributions reduced accordingly.
If the total capital expenditure incurred is less than US $5.6 billion (AU$7.6 billion), GIP will pay Woodside an additional amount equal to 49 per cent of the under-spend.
The Pluto Train 2 is expected to be supported by a long-term processing and services agreement (PSA) between the Pluto and Scarborough joint ventures.
Completion of the transaction is still subject to conditions, including final investment decisions (FID) for Pluto and Scarborough developments, as well as Foreign Investment Review Board approval.
Woodside chief executive officer Meg O’Neill has welcomed GIP to the Pluto Train 2 joint venture.
“We are very pleased to have GIP joining us in the development of Pluto Train 2, given their impressive credentials and extensive global capacity,” said O’Neill.
“GIP’s investment will help fund the expansion of the world-class Pluto LNG facility.
“The sale of interest in Pluto Train 2 is a significant milestone as we progress towards a FID on our Scarborough development, further de-risking this globally competitive investment.”
For more information visit the Woodside website.