Global Infrastructure Partners (GIP) is buying a 49% stake in an offshore gas project from Woodside Petroleum, Australia’s largest energy company.

Woodside said that the estimated capital expenditure for the development of Pluto Train 2 project was US$5.6bn (€4.84bn).

Woodside said GIP had also agreed to fund an additional amount of the construction cost of US$835m.

GIP outbid Brookfield and Hong Kong-based Cheung Kong Infrastructure to secure the stake in the Pluto Train 2 Joint Venture, a key component of Woodside’s gas project off the coast of Western Australia. 

The purchasing entity is Sharon Acquirer Trust, an investment entity owned by funds managed or advised by GIP.

GIP chairman and managing partner, Adebayo Ogunlesi, said liquefied natural gas (LNG) was expected to play a critical role in transitioning the world toward carbon neutrality over coming decades.

“We are particularly attracted to the modern and efficient technologies Woodside has adopted, making LNG from Pluto Train 2 one of the lowest carbon-intensity sources of LNG delivered into Asia,” Ogunlesi said.

Woodside CEO. Meg O’Neill, said: “GIP’s investment will help fund expansion of this world-class Pluto LNG facility. LNG supplied from the expanded Pluto facility will help our customers achieve their decarbonisation goals through the energy transition.”

She added: “The sale of the interest in Pluto Train 2 is a significant milestone as we progress towards a final investment decision on our Scarborough development, further de-risking this globally competitive investment.”

The project is expected to get the green light to proceed before the end of this year.

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