According to The Australian Financial Review, two major Japanese investors have struck a $US500 million ($763 million) deal to buy into Woodside Energy’s $16.5 billion Scarborough LNG project in Western Australia, shrugging off warnings from green groups about the environmental and commercial risks involved with the project.
The deal with Sojitz Corporation and Sumitomo Corporation also runs counter to warnings that Japanese buyers have lost confidence in Australia as a long-term supplier of LNG after a raft of policy measures against the sector under the Albanese government that cast doubt over future supply volumes.
Under the accord announced on Tuesday, the two diversified trading giants, equal partners in the Japan LNG venture, will buy a 10 per cent stake in the Scarborough gas field and they have signed up for LNG cargoes. They have also agreed to collaborate with Perth-based Woodside on clean energy ventures such as hydrogen and carbon capture and storage.
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