LNG Japan has inked a deal worth as much as $880 million (around ¥126 billion) for a stake in a giant natural gas project off Australia, in a new step to secure supply of a fossil fuel the nation expects to retain a key role in its energy mix.
The joint venture, owned by Sumitomo and Sojitz, will acquire a 10% interest in the Scarborough operation from Woodside Energy Group. It also struck a pact for supply from the project of 12 cargoes — or about 900,000 tons — of liquefied natural gas each year for a decade from 2026, the Perth-based producer said Tuesday.
Scarborough, which will drill gas offshore and process it at an expanded plant on the Burrup Peninsula in Western Australia, is forecast to produce as much as 8 million tons of LNG a year and has become a lightning rod for climate activists opposed to the development of new fossil fuels projects.