Australian oil and gas giant Woodside has signed an AUD$1.507 billion loan agreement with the Japan Bank for International Cooperation (JBIC) to fund its controversial Scarborough Energy Project.
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The agreement follows a memorandum of understanding signed by Woodside and JBIC in November 2022 aimed at securing a stable supply of energy for Japan and to assist in achieving its decarbonisation goals.
Woodside CEO Meg O’Neill said, “JBIC has supported all of Woodside’s milestone Australian projects including the North West Shelf, Pluto LNG and now Scarborough. It is therefore fitting that we have executed this agreement in the same week that
Woodside celebrates 35 years of secure and reliable LNG exports to Japan.
“Investment in new Australian LNG supply, like Scarborough, can help Japanese customers meet their energy security needs while also supporting regional decarbonisation goals.”
JBIC deputy governor Kazuhiko Amakawa said, “This loan will contribute toward securing long-term, stable supplies of LNG, which is an important energy resource for Japan.”
The Scarborough Energy Project is in on schedule for first LNG cargo in 2026.
The Scarborough project is opposed by environmental groups such as Greenpeace and the Australian Conservation Foundation (ACF).
“Woodside’s Scarborough project is a disaster for nature and a methane bomb waiting to be detonated,” ACF says on its website.
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ACF argues the Scarborough Project’s greenhouse gas emissions will have a significantly detrimental impact on the Great Barrier Reef.
