Japan to provide $1 billion loan to develop Woodside’s Scarborough LNG project in Australia

Stephen Stapczynski, Bloomberg May 30, 2024

(Bloomberg) – Japan will provide Woodside Energy Group Ltd. a $1 billion loan to develop a natural gas project in Australia, another move by the Asian energy importer to ensure the supply of the fossil fuel for decades.

Source: Woodside Energy

The loan for the Scarborough project, which is scheduled to deliver its first LNG shipment in 2026, will come from the Japan Bank for International Cooperation, according to a statement from Woodside. The public financial institution has stepped-up efforts to secure LNG, including granting loans for fuel purchases.

Japan, the world’s second-biggest LNG buyer, is pushing for more global gas supply after the 2022 energy crisis sent prices to a record and risked shortages. In the last year, Woodside sold stakes in Scarborough to Japanese companies Jera Co. and LNG Japan.

Scarborough is forecast to produce as much as 8 million tons a year of the heating and power plant fuel. For comparison, Japan imported about 65 million tons last year. The Scarborough project has become a target for climate extremists opposed to the development of critical fossil fuel projects.

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