Woodside and BHP strike deal on Scarborough gas processing

Woodside and BHP have agreed to a tolling price for the processing of gas from the Scarborough gas field off the coast of Western Australia.

The agreement on the tolling price relates to the cost of processing gas, from the Scarborough field, at the Pluto facility on the Burrup Peninsula.

Woodside and BHP announced the key milestone yesterday, saying it was a significant step towards the development of the proposed processing hub.

Western Australian premier Mark McGowan said that the project was now in a strong positon for Final Investment Decision in the first quarter of 2020.

“This is an important milestone in a project that is vital for Western Australia. We are now one step closer to the creation of thousands of Western Australian jobs,” McGowan said.

“I congratulate Woodside and BHP for all their work to date and look forward to further updates on the final investment decision, earmarked for early 2020.”

The Scarborough Project is expected to create 3,200 jobs in the construction phase and almost 600 jobs will be created or sustained during operations.