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JERA to enter agreement with Australia-based Woodside to acquire participation interest in Scarborough Gas Field to secure stable LNG supply and sign LNG Sales and Purchase Heads of Agreement with Woodside2024/02/23

JERA Co., Inc. (“JERA”) announced today it entered into a sale and purchase agreement with Woodside Energy Group Ltd ("Woodside"), a major Australian energy company, to acquire a 15.1% participating interest in the Scarborough gas field development project (the "Project"). The total consideration of the acquisition of the Project is estimated to be approximately US$ 1.4 billion, which comprises the purchase price and reimbursement to Woodside for JERA’s share of expenditure incurred up to completion. Completion of the transaction is subject to conditions, including obtaining permits and approvals.


The Scarborough gas field is located off the northwest coast of Western Australia in Commonwealth waters. Natural gas produced from the Scarborough field will be transported via a subsea pipeline to the Pluto LNG facilities for the production of LNG. The composition of the Scarborough gas is very low in CO2, at less than 0.1%.


The annual LNG production expected from the Project is approximately 8 million tonnes per annum (“Mtpa”) at its peak rate. JERA will off-take an equity share of approximately 1.2 Mtpa of LNG cargoes. The final investment decision for the Project was made in November 2021, and the first cargo is targeted for 2026.


As part of the broader strategic relationship, JERA also entered into a non-binding heads of agreement (HOA) with Woodside, for the sale and purchase of LNG from its portfolio. Under the agreement, JERA intends to purchase 6 cargoes (approximately 0.4 Mtpa) of LNG from Woodside for 10 years from 2026 onwards.


In addition, JERA signed a non-binding memorandum of understanding (MOU) with Woodside to explore collaboration in decarbonization initiatives. Moving forward, JERA will be evaluating potential collaboration with Woodside in areas such as ammonia, hydrogen, and Carbon Capture and Storage (CCS).


In Asia, there is a strong need to balance the stable supply of energy to support economic growth with decarbonization. Gas-fired power generation, which has lower CO2 emissions than other fossil fuel-based power generation, has a complementary relationship with renewable energy, which has an unstable power output. It is also an indispensable energy source for promoting energy transition. As energy demand is expected to grow, the importance of securing a stable supply of competitive LNG increases, and LNG produced from Australia, located close to Asia, including Japan, is expected to play an important role.


JERA will contribute to solving the world’s energy issues through achieving sustainability for a cleaner world, affordability for lower prices, and stability of supply simultaneously. This will be accomplished by utilizing the company’s extensive experience in the LNG value chain business, which has been cultivated over many years.


Yukio Kani, JERA Global CEO and Chair said, “Solving the world's energy issues requires deep collaboration to tackle challenges one by one with reliable partners. I am grateful for the open and engaging dialogue I have had with Woodside CEO Meg O’Neill. I look forward to further developing our relationship with Woodside, a global player in LNG, and to promoting new initiatives to achieve decarbonization.”


Woodside CEO Meg O’Neill welcomed Japan’s largest utility, JERA, into the Scarborough Joint Venture.

“JERA’s participation is a further demonstration of the importance of Scarborough to Japanese customers and confidence in long-term demand.

“Scarborough is a world-class project which will provide reliable energy for customers in the Asian region, including in Japan. LNG continues to be an important energy source for Japan and one which supports the country’s decarbonisation ambitions,” she said.


Outline of equity sale and purchase agreement


Woodside Energy (Australia) Pty Ltd


JERA Scarborough Pty Ltd

Interests acquired

Equity of Scarborough gas field – 15.1%

*LNG: Up to 1.2 Mtpa


Outline of non-binding HOA for sale and purchase of LNG


Woodside Energy Trading Singapore Pte Ltd




April 2026 to March 2036 (10 years)

Contract quantity

6 Cargoes (Approx. 0.4 Mtpa)

International commercial terms

Delivered Ex Ship (DES)


Outline of non-binding MOU on collaboration in decarbonization initiatives

Contract party

Woodside Energy Technologies Pty Ltd


Scope of business

・Production, supply, and procurement of low carbon ammonia

・Hydrogen and liquefied hydrogen business

・Decarbonization business including CCS


Attachment:Outline of the agreements signed with Woodside[PDF: 1.83 MB]


About JERA Co., Inc.

Established in 2015, JERA is an equal joint venture of two major Japanese electric power companies, TEPCO Fuel & Power Incorporated and Chubu Electric Power Company and produces about 30% of all electricity in Japan. JERA is an energy company with global reach that has strength in the entire energy supply chain, from participation in LNG upstream projects and fuel procurement, through fuel transportation to power generation. JERA, which stands for Japan’s Energy for a New Era, will take on the challenge of achieving net zero CO2 emissions from its domestic and overseas businesses by 2050 and is supporting an energy transition in an environmentally and socially responsible manner.

For more details:


About Woodside Energy Group Ltd

Woodside is a global energy company, founded in Australia. Woodside provide energy the world needs to heat and cool homes, keep lights on and enable industry. Woodside’s strategy is to thrive through the energy transition, optimising value and shareholder returns through developing a low-cost, lower-carbon, profitable, resilient and diversified portfolio.