Loan for Development of Scarborough Energy Project in Australia
Contributing toward Securing Stable Supply of Energy and Promoting Energy Transitions

• Region: Oceania
• Energy and Natural Resources
• Overseas Investment Loans

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed today a loan agreement amounting to up to USD1,000 million (JBIC portion) with Woodside Finance Limited, a financial subsidiary of the Australian company Woodside Energy Group Ltd (Woodside) (Loan). The Loan will sit alongside a loan facility from private financial institutions. The Loan together with the loan facility from the private financial institutions amounts to a total of USD1,450 million.
     
2. The Loan is intended to provide funds to assist Woodside in developing the Scarborough Energy Project, which is located off the northwest coast of Western Australia. The Loan follows a loan agreement signed by JERA Scarborough Pty Ltd (JERA Scarborough), an Australian company that is invested in by JERA Co., Inc. (JERA), on March 26, 2024^*1.
     
3. JERA will acquire a 15.1% participation interest in the Scarborough joint venture through JERA Scarborough and will receive up to about 1.2 million tons/year of the LNG, equivalent to its equity interest in the project. The loan, which supports Japanese companies in obtaining a participation interest and procuring LNG, will contribute toward securing long-term, stable supplies of LNG, which is an important energy resource for Japan, and diversifying the LNG supply sources for Japan. In addition to supporting the procurement of LNG equivalent to the equity interest, JBIC established a framework with Woodside to create further potential opportunities for supplying LNG to Japan during winters when demand for LNG grows. Through this framework, JBIC hopes to promote discussions that enhance cooperation with the government of Japan, to prepare for emergency situations when the supply and demand balance for LNG is tight.
     
4. As the operator of major Australian LNG projects, Woodside has been playing an important role in securing stable supply of energy, such as LNG, for Japan for 35 years. On November 1, 2022^*2, JBIC signed a non-binding memorandum of understanding for a comprehensive strategic partnership with Woodside that aims to, inter alia, secure a stable supply of energy and strengthen collaboration and promote cooperation in the field of decarbonization. This Loan further strengthens JBIC’s relationship with Woodside in multiple fields.
     
5. JBIC will continue to actively support the development of energy resources by Japanese companies and financially assist in the securing of a stable energy supply for Japan.
     

Note

1. *1 
   See Press Release on March 26, 2024.
2. *2 
   See Press Release on November 1, 2022.