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Australia's Woodside to sell stake in Scarborough to Japan's JERA for $1.4 bln

Woodside Energy is selling a. 15.1% stake in its Scarborough project to Japan's JERA for about. $ 1.4 billion, marking the Australian gas producer's 2nd stake. sale to a Japanese liquefied gas (LNG) buyer in six. months.

The approximated worth of the non-operating participating. interest sale offer consists of a purchase price of about $740. million and reimbursement to Woodside for JERA's share of. expenditure incurred from the deal reliable date of Jan. 1, 2022, Woodside stated on Friday.

The deal is JERA's biggest abroad LNG stake acquisition,. Yuichiro Kato, executive officer of JERA, informed a press. conference on Friday. JERA, Japan's biggest power generator, is. taking a look at moneying the purchase through a combination of equity. capital and debt, he added.

In August 2023, Woodside announced a sale of 10%. getting involved interest in Scarborough to LNG Japan for $500. million.

Resource-scarce Japan is the world's second-biggest LNG. importer after China. Regardless of slowly cutting imports of the. fuel over the previous years, thanks to nuclear power restarts and. renewable resource, it still counts on LNG for a 3rd of its. electrical power mix.

Japanese firms have been diversifying their sources of LNG. through acquisitions abroad. In December, Japan's most significant city. gas provider Tokyo Gas purchased Texas-based gas. producer Rockcliff Energy for $2.7 billion.

The stake sale to JERA was anticipated to be completed in the. 2nd half of 2024, Woodside stated in a declaration.

Woodside will end up if both the stake sales go through. with a 74.9% interest in the $12 billion Scarborough gas task. and continue as its operator. The job continues to target. its very first LNG freight for 2026.

JERA's participation in the Scarborough joint venture,. which will likewise include LNG Japan, is an additional demonstration of. the importance of the project to Japanese customers and. self-confidence in long-term demand, Woodside CEO Meg O'Neill said. in the declaration.

We are likewise eagerly anticipating checking out new energy and. business chances together with JERA.

Woodside likewise participated in a non-binding contract with JERA. to supply 6 LNG cargoes from its global portfolio on a. provided ex-ship basis annually for a decade starting 2026.

(source: Reuters)