Woodside has struck a deal with the biggest power utility in Japan to sell a 15.1% stake in the Scarborough LNG project.
Australia’s Woodside has struck a deal to sell a 15.1% stake in the Scarborough LNG project to JERA—the biggest power utility in Japan. The deal is valued at $1.4 billion and will secure long-term liquefied gas supply to JERA’s clients. Per Woodside, the sale would include a payment of $740 million as a price tag plus reimbursement for the money the Australian company had already spent on the development of the offshore project since 2022.
Japan is almost exclusively dependent on energy imports for its consumption and liquefied natural gas is one of the country’s chief forms of energy imports. The country is also the largest buyer of LNG from Australia because of its proximity, which makes the purchases more affordable. After the second stake sale, Woodside will remain the holder of a 74.9% stake in the Scarborough project. Investment in the facility is seen at $12 billion, with first cargo targeted for 2026.