Woodside Energy has overcome approval delays, court battles and a labour shortage to start work on Pluto Train 2 at a ground-breaking ceremony today.
Woodside Energy has overcome approval delays, court battles and a labour shortage to start work on Pluto Train 2 at a ground-breaking ceremony today.
It’s been about 10 years since the first 4.9 million tonnes per annum liquefied natural gas train opened at Pluto on the Burrup Peninsula, following a final investment decision in 2007.
The second train is being constructed by Bechtel as part of a $16 billion development to process gas from the Scarborough field.
A portion of the pipeline linking the field to the new LNG train was before regulators for nearly 1,000 days, while as recently as earlier this month Woodside was fronting court to defend an action by the Conservation Council of WA.
But construction work is under way.
State Development Minister Roger Cook said the government wanted to position Western Australia as a safe and reliable LNG supplier to the world.
That comes as European buyers look for new supply sources after disruptions of piped LNG from Russia.
Mr Cook said WA produced about 12 per cent of global LNG in 2021.
Woodside chief executive Meg O'Neill said the project would employ 2,000 people at the peak of construction in 2024.
“Many opportunities will be realised in WA, providing a boost to long-term investment in education and training, growing jobs and bringing work through the supply chain," she said.
“Scarborough gas processed through an expanded and efficient Pluto facility will support the decarbonisation goals of our customers in Asia."
Conservation Council of Western Australia executive director Maggie Wood indicated continued concerns about the projects.
"Woodside is starting building work on a project that is still hanging in the balance," Ms Wood said.
"Scarborough is currently subject to two separate legal challenges and still requires four key approvals from the offshore oil and gas regulator.
"No amount of spin can hide the fact that Scarborough remains deeply unpopular, highly controversial and an expensive gamble for Woodside."
She also criticised the state government's support of the project.
"The premier has been persistent in using his considerable platform to spruik the supposed benefits of Scarborough, but the reality is very different," Ms Wood said.
CCWA disputed the economic impact of the project.
Chamber of Commerce and Industry of WA chief executive Chris Rodwell said it demonstrated to the world's investment community that the state was a leading jurisdiction for investment.