According to the statement, the tolling price is valid to 31 March 2020, and is complemented by a comprehensive, non-binding heads of agreement (HoA) on other tolling terms.
Woodside claims 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: “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 first quarter of 2020.
“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.”
According to the statement, 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.lngindustry.com/liquid-natural-gas/18112019/woodside-and-bhp-agree-tolling-price-for-scarborough-gas/