Scarborough Energy Project – Pluto Train 2 Expansion, 8 mtpa LNG from 2026

Project Number: AU-LNG-WEG683-P9
Project Name: Scarborough Energy Project & Pluto LNG Train 2 Expansion
Operator: Woodside Energy Group Ltd (Scarborough JV operator)
Location: Carnarvon Basin offshore Western Australia, ~375–430 km north-west of Karratha, with onshore processing at Pluto LNG on the Burrup Peninsula.

The Scarborough Energy Project is one of Australia’s largest ongoing LNG developments, combining the Scarborough offshore gas field with the construction of a second LNG train at the Pluto LNG facility. Sanctioned in November 2021 with a budget of around US$12–12.5 billion, this integrated project will deliver up to 8 million tonnes per annum (mtpa) of LNG starting from the second half of 2026.

By securing Scarborough gas as the feedstock, the project will extend the life of Pluto LNG for decades, strengthen Australia’s LNG export capacity, and ensure domestic gas supply to Western Australia.

Companies Involved and Their Roles

A project of this scale relies on global EPC contractors, drilling specialists, and equipment suppliers, each responsible for specific scopes of work.

• Woodside Energy (Operator)
  Scope: Overall project management, integration of Scarborough offshore gas with Pluto Train 2, modifications to Pluto Train 1 for lean gas processing, and LNG marketing.
  Duration: Operator from project inception through the full 25+ year operating life.

• Bechtel (Pluto Train 2 EPC Contractor)
  Scope: Engineering, procurement, and construction of a new 5 mtpa LNG train and domestic gas facilities capable of supplying up to 225 TJ/day. Bechtel fabricated 51 large modules, with final delivery completed in late 2024.
  Duration: Site construction started in 2022, with commissioning and handover targeted for 2026.

• McDermott (Floating Production Unit EPCIC)
  Scope: Engineering, procurement, construction, installation, and commissioning of the semi-submersible Floating Production Unit (FPU) for Scarborough. In May 2025, the FPU topsides were successfully mated to the hull offshore.
  Duration: Contract awarded in 2021; ongoing integration and commissioning through 2026.

• Saipem (Subsea Pipeline EPCI)
  Scope: Engineering, procurement, coating, and installation of the ~430 km Scarborough to Pluto Gas Pipeline (SGP), a 36/32-inch trunkline delivering Scarborough gas to the onshore LNG facility.
  Duration: Active from 2021 to 2024, with installation completed ahead of commissioning.

• EUROPIPE (Linepipe Supply)
  Scope: Supply of large-diameter subsea linepipe for the 430 km trunkline.
  Duration: Pipe manufacturing and delivery between 2022 and 2023.

• Valaris (Drilling Contractor)
  Scope: Offshore drilling campaign covering eight high-rate production wells, using the VALARIS DPS-1 semi-submersible rig.
  Duration: Drilling began in February 2024 and is expected to continue through 2025.

Scope and Duration of Work

The Scarborough Energy Project is designed to operate for at least 25 years, supplying LNG for international export and domestic gas for Western Australia. Bechtel’s EPC scope for Pluto Train 2 covers four years of construction and commissioning. McDermott’s FPU contract runs from 2021 to 2026. Saipem’s subsea pipeline EPCI was completed within three years (2021–2024). EUROPIPE delivered its scope over two years (2022–2023). Valaris is engaged for at least two drilling campaigns spanning 2024–2025.

Project Milestones

• 2019: Woodside consolidates ownership in Scarborough.

• Nov 2021: Final Investment Decision (FID) approved at US$12 billion.

• 2022: Bechtel begins site works for Pluto Train 2; pipeline installation begins.

• 2023–2024: Pipeline and subsea installations progress; drilling campaign starts; Pluto Train 2 modules delivered.

• Dec 2024: Final large modules for Train 2 arrive at Burrup site.

• May 2025: McDermott completes floatover mating of the Scarborough FPU topsides and hull.

• Q2 2025: Project declared 86% complete (excluding Train 1 modifications).

• H2 2026: First LNG cargo expected from Pluto Train 2, delivering up to 8 mtpa from combined Train 1 and Train 2 operations.

Environmental Impact

Unlike many gas fields, Scarborough contains lean gas with very low CO₂ content (~0.1%), giving it a lower emissions profile compared to other Australian LNG projects. Still, environmental concerns have been raised regarding onshore processing at Pluto and associated long-term emissions.

Woodside has secured approvals from Australia’s National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) for offshore operations, pipeline installation, and Scarborough’s environmental management. Pluto LNG also received approval of a Greenhouse Gas Abatement Program in 2025, committing to emissions reduction through offsets and abatement technologies.

Despite legal challenges from environmental and cultural groups, the Scarborough Energy Project remains on track for its 2026 target.

Stakeholder Benefits

• Economic Growth: Estimated to inject billions into the Australian economy through taxes, royalties, and export revenue.

• Job Creation: Thousands of construction jobs during peak build, with hundreds of ongoing operations roles in the Pilbara region.

• Domestic Gas Security: Up to 225 TJ/day of domestic gas to Western Australia, supporting local industries and households.

• Energy Exports: Strengthens Australia’s position as a leading LNG exporter to Asia, with long-term contracts securing supply to South Korea, Japan, and China.

• Corporate Growth: For Woodside, the project adds around 8 mtpa of LNG capacity, cementing its role as one of the world’s top independent LNG producers.

The Scarborough Energy Project is more than an LNG development—it is a vital link in Australia’s future energy strategy. With first gas expected in 2026, the project will deliver 8 mtpa of LNG, ensure the long-term operation of Pluto LNG, create local employment, and strengthen Australia’s global energy position. While environmental and regulatory challenges persist, Scarborough is set to become one of the defining projects in the Asia-Pacific LNG industry.