Acquisition of Participating Interest in the Scarborough Gas Project in Western Australia and Collaboration towards Decarbonized Society

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo, Director, President and Chief Executive Officer: Masayuki Hyodo) has reached agreements with Woodside Energy Group Ltd ("Woodside"), in the following two areas:

1. Acquisition of Participating Interest in the Scarborough Joint Venture in Western Australia
LJ Scarborough Pty Ltd, a currently wholly owned subsidiary of LNG Japan Corporation (“LNG Japan”, Head Office: Chiyoda-ku, Tokyo, President: Kyo Onojima), which in turn is a 50%-owned subsidiary of Sumitomo Corporation, has entered into a Sale and Purchase Agreement with a wholly owned subsidiary of Woodside, to acquire a 10% participating interest (Sumitomo Corporation’s interest: 5%) in the Scarborough Joint Venture. The transaction is subject to relevant Australian and Western Australian government approvals.

The Scarborough Joint Venture is unincorporated and comprises the Scarborough field and associated offshore and subsea infrastructure. The Scarborough field is located approximately 375km off the coast of Western Australia. 

The Scarborough project will include the installation of a floating production unit with eight wells drilled in the initial phase and thirteen wells drilled over the life of the Scarborough field. The gas will be transported for processing at Pluto LNG through a new trunkline of approximately 430 km. Natural gas extracted from the Scarborough project contains relatively low levels of CO2. In addition, the Scarborough project intends to pursue further opportunities to reduce GHG emissions. Final investment decision on the Scarborough project, with US$ 5.7 billion (approximately 800 billion yen) development cost (100% basis) was taken by Woodside in November 2021. 

As a 10% participating interest holder in the Scarborough Joint Venture, LNG Japan will cooperate with Woodside in developing the project, which is targeting first LNG cargo in 2026. LNG Japan will independently market and sell its equity LNG cargoes (up to 0.8Mtpa per year).  

Sumitomo Corporation believes that natural gas and LNG are expected to play important roles in the global energy transition, and demand is expected to increase, especially in Asia where natural gas is required to displace coal and other higher carbon intensity fuel sources. In addition, the importance of energy security has recently been re-emphasized due to geopolitical risks. Through participation in the Scarborough Joint Venture, Sumitomo Corporation will contribute to the development of Australia and will further work towards the realization of a lower carbon society and provide a stable and secure supply of lower carbon energy, particularly in Japan and other Asian countries.

2. Collaboration towards the Establishment of a Decarbonized Society
Sumitomo Corporation has signed a non-binding Memorandum of Understanding with Woodside to collaborate in new energy which could include ammonia, hydrogen, carbon capture and storage (CCS), forestry and carbon management technology. Woodside and Sumitomo Corporation will explore collaboration opportunities to mitigate climate change and contribute to establishing a decarbonized society.

Sumitomo Corporation identifies “mitigation of climate change " as a significant societal challenge and is actively engaging in diverse business developments to establish a sustainable energy cycle, aiming to achieve carbon neutrality in its business activities by 2050. In collaboration with Woodside, which is also taking on the challenge of energy transition, Sumitomo Corporation and Woodside will utilize each other’s knowledge and experiences to work towards further business development and expansion.

【Overview of Scarborough project】
Location Map:

Sumitomo Corporation’s Material Issues

Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to the following material Issues.

Achieving Harmony with the Global Environment

To realize recycling-oriented society and mitigate climate change, we are working to establish frameworks for the efficient use of resources and stable supply of renewable energy. In doing so, we will achieve growth in harmony with the global environment.

Contributing to the Development of Local Communities and Industries

We steadily procure and provide goods and services to meet the needs of people in various countries and regions and contribute to developing industrial platforms. Through these means, we will create a virtuous cycle in which we can grow and develop together with local communities.

Establishing a Foundation for Comfortable and Enriching Lifestyles

We strive to realize more convenient and comfortable lifestyles by providing goods and services for daily use while also responding to needs for high-quality lifestyles in order to support the physical and mental health of people around the world.

Providing Diverse “Accessibility”

We provide diverse accessibility to open up the possibility of creating new value. To this end, we will improve mobility for safe and efficient flow of people and goods, and expand the network connecting information and finance.

Developing Human Resources and Promoting Diversity

In order to create new value and innovation by allowing our diverse personnel to fully exercise their abilities in a variety of fields, we will promote the development and empowerment of human resources, which represent our most important management resources.

Enhancing Governance

We will enhance our ability to draft and implement strategies for achieving sustainable growth and to provide appropriate supervision of these strategies, all while maintaining transparency. In this manner, we will improve management efficiency and maintain sound management.