Australia’s Woodside pledges extra domestic gas in 2025

  • : Crude oil, Natural gas
  • 24/04/24

Australian independent Woodside Energy has promised to increase gas flows to domestic customers with a predicted national shortfall.

The firm promises to make an extra 32PJ (854mn m³) available to the Western Australia (WA) domestic market by the end of 2025, Woodside chief executive Meg O'Neill said at its annual meeting in Perth on 24 April, following criticism of the state's LNG projects' contribution to WA supplies. Woodside produced 76PJ for the WA market in 2023.

The company has initiated an expression of interest process for an additional 50PJ of gas from its Bass Strait fields offshore Victoria state for supply in 2025 and 2026 when a tight market is expected for east Australia.

Woodside also said its Sangomar oil project offshore Senegal is 96pc complete with 19 of 23 initial wells complete. WA's Scarborough project is 62pc complete with trunkline installation and well drilling having started in the offshore Carnarvon basin.

It last month awarded the sub-sea marine installation contract for its 100,000 b/d Trion project offshore Mexico, which is targeting its first oil in 2028.

Woodside's 2023 operating revenue was $14bn, resulting in a profit of $1.7bn.

Climate tensions

Woodside's climate transition action plan saw 58.36pc opposition from shareholders at the annual meeting but is non-binding on the company. Woodside's 2021 climate report also faced significant opposition with 48.97pc voting against its adoption. The company did not put its 2022 climate report up for vote at last year's annual meeting.

Its new emissions abatement target aims to reduce Woodside's customers' scope 1 and 2 emissions by 5mn t/yr by 2030, along with a $5bn investment in new energy projects by the same date. Net equity scope 1 and 2 greenhouse gas emissions rose to 5.53mn t carbon dioxide equivalent (CO2e) in 2023 from 4.61mn t CO2e in 2022 because of its merger with BHP Petroleum in mid-2022.

Several major institutional shareholders including large domestic and international pension funds had already flagged their vote against Woodside's climate report, citing an insufficient urgency to reduce the firm's emissions.

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