Woodside chief executive Peter Coleman said the agreement was a another step toward the realisation of its proposed Burrup Hub, an interconnected LNG network bringing together all of Woodside’s major assets.
“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,” he said.
“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 [final investment decision] in the first half of next year.”
BHP Petroleum Australia country manager Graham Salmond said it remained committed to Scarborough, which was a project that could “compete for capital within its capital allocation process.”
“We are pleased to align on a non-binding commercial heads of agreement with Woodside, which includes a competitive processing tariff that reflects BHP’s view on value and risk, and agreement to fully assess optimisation to process additional Scarborough gas through the North West Shelf,” he said.