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