JERA Co., Inc., Japan’s largest electricity producer and a global energy leader, has finalised a sale and purchase agreement with Woodside Energy (Australia) Pty Ltd to acquire a 15.1 percent participating interest in the Scarborough gas field, located 375 km off the coast of Western Australia. The acquisition, initially announced in February 2024, comes at a total estimated value of US$1.4 billion and includes JERA’s contribution to development costs to date. The deal, which required and obtained necessary Australian investment approvals, secures JERA’s stake in one of the region’s key gas developments.
The Scarborough Joint Venture, operated by Woodside, encompasses the Scarborough gas field along with an extensive network of subsea infrastructure. Gas from the field will be transported via a 430 km subsea pipeline to the Woodside-operated Pluto LNG production facilities. Through this acquisition, JERA gains access to an estimated 1.2 million tonnes per annum of liquefied natural gas from Scarborough, from a total projected peak production of approximately 8 Mtpa.
This acquisition follows an earlier agreement in September 2024, under which Woodside will provide JERA with 0.4 million tonnes of LNG annually, equivalent to six cargoes per year, beginning in April 2026. This long-term agreement ensures LNG supplies to Japan as the country continues to diversify its energy sources amid ongoing global energy transitions.
To facilitate the financing of the Scarborough acquisition, JERA secured support from the Japan Organisation for Metals and Energy Security, including a loan guarantee. Looking forward, JERA’s senior managing executive officer, Mr Ryosuke Tsugaru, announced plans for potential collaboration with Woodside on lower-carbon fuel initiatives and carbon capture and storage under a newly signed memorandum of understanding. Tsugaru emphasised that both JERA and Woodside aim to responsibly support the global energy transition, with LNG expected to play a pivotal role in the shift from coal, especially in developing regions.
The acquisition of Scarborough adds to JERA’s portfolio of major Australian LNG interests, managed through JERA Australia Pty Ltd, a wholly owned subsidiary established in 2017 to oversee investments in projects including Gorgon, Ichthys, Darwin LNG, and Barossa. JERA Australia CEO Gaku Takagi noted the strategic significance of Australian LNG for both JERA and Japan’s energy security, with approximately 10 Mtpa out of JERA’s annual 35 million tonnes of LNG sourced from Australia.
“Through this acquisition and our partnerships, JERA is committed to supporting a secure, cleaner energy future for Japan and the wider region,” said Takagi.
For more information visit www.jera.co.jp
