Scarborough Energy Project

The Scarborough Energy project (during construction and over its productive life) is expected to result in a significant direct contribution to the Australian economy through capital and operational spending, employment, taxation payments, and exports.

A$52.8 billion
Taxation and royalty payments estimated to be generated in Australia between 2024 and 2056
A$90 million
Committed to spending more than A$90 million with Karratha businesses
A$3.6 billion
Awarded more than A$3.6 billion in contracts to local Western Australian businesses
8.5 million
Expected to be large enough to power more than 8.5 million homes for more than 30 years*

MYTH

The Scarborough Energy Project won’t benefit Australia.

FACT

A report prepared by consultancy ACIL Allen has found that Woodside’s Scarborough Energy Project is expected to generate an estimated A$52.8 billion in taxation and royalty payments, boost GDP by billions of dollars between 2024 and 2056 and employ 3200 people during peak construction in Western Australia**.

The Scarborough Energy Project (during construction and over the life of the project) is expected to result in a significant direct contribution to the Australian economy through capital and operational spending, employment, taxation payments and exports. Most of these direct impacts are forecast to be realised in Western Australia, particularly in the Pilbara. The development of the project is expected to provide a boost to Western Australia, increasing jobs and bringing work through the supply chain.

The project is expected to generate an estimated A$52.8 billion in taxation and royalty payments and boost GDP by billions of dollars between 2024 and 2056, as well as employ 3200 people during peak construction in Western Australia.¹ The project has awarded more than A$3.6 billion in contracts to local Western Australian businesses, like Hicks Civil and Mining, a 100% family-owned Pilbara Aboriginal business.² The project is expected to be large enough to power more than 8.5 million homes for more than 30 years.³

Woodside is working closely with its key contractors to maximise opportunities for local, regional and Western Australian businesses across the supply chain for the project. Many of the direct opportunities for the second liquefied natural gas (LNG) processing train – Pluto Train 2 – are expected to be realised in Western Australia, including Indigenous participation opportunities. There are firm commitments to support skills development and training for Indigenous and non-Indigenous residents in the Pilbara and Gascoyne to meet employment and supplier opportunities arising from the development.

Click here to learn more about the Scarborough Energy Project, its contribution to the Australian economy and the support it can provide to other countries during the energy transition.

_*_{Based off annual Australian household energy use, ‘Australian Energy
Statistics Energy update 2021 Report’, Diser 2021.}

_{** woodside.com/docs/default-source/our-business---documents-and-files/scarborough/economic-impact-of-the-scarborough-energy-project_summary-brochure.pdf.}

_{1 ‘Economic impact of the proposed Scarborough Energy Project’, ACIL Allen, March 2024 (woodside.com/docs/default-source/our-business---documents-and-files/scarborough/economic-impact-of-the-scarborough-energy-project_summary-brochure.pdf).}

_{2 www.woodside.com/media-centre/news-stories/story/local-business-spotlight-hicks-civil-and-mining.}

_{3 Based off annual
Australian household energy use, ‘Australian Energy Statistics Energy update
2021 Report’, Diser 2021.}

Additional Facts

MYTH

Gas from the Scarborough Energy Project will be entirely exported.

FACT

A significant proportion of the gas produced from the project is forecast to be sold as LNG into predominately Asian markets where it can support countries in the region, including customers and suppliers, to reduce their emissions.

The project is expected to also provide the gas needed to produce the fertiliser (urea) that our farmers use to grow food, with a 20-year gas supply agreement in place with Perdaman. Perdaman is currently building a 2.3 million tonne per annum urea plant near the Pluto LNG onshore facility and Woodside has signed a 130 terrajoules per day of gas over a term of 20 years to supply the plant. Additionally, Perdaman has an offtake agreement with Incitec Pivot Limited, an Australian multinational corporation that manufactures fertiliser and explosives chemicals.

MYTH

Woodside will get the Scarborough gas for free. Australia and Western Australia will get nothing.

FACT

The Scarborough Energy Project is expected to generate an estimated A$52.8 billion in taxation and royalty payments to the Australian and Western Australian governments between 2024 and 2056^.

Governments can then use those taxation payments for activities that further build the economy, like repairing roads, providing healthcare, supporting the less fortunate and building infrastructure like hospitals, schools and community centres.

What’s more, Woodside and its Joint Venture participants have made a capital investment of approximately A$18.5 billion to develop the Scarborough gas field – before the first cargo of gas is even shipped.

The project is located offshore in Commonwealth waters and so it is not subject to State royalties, but it is subject to the petroleum resource rent tax (PRRT), the Government’s preferred taxation method since 1987.⁴ This system is similar to the way individual Australians pay income tax to the Federal Government, not State governments.

^{^}^{‘Economic impact of the proposed Scarborough Energy Project’, ACIL Allen, March 2024 (woodside.com/docs/default-source/our-business---documents-and-files/scarborough/economic-impact-of-the-scarborough-energy-project_summary-brochure.pdf).}

^{4 Except for the North West Shelf Project and the Joint Petroleum Development Area.}

MYTH

The Scarborough Energy Project will cause almost 1.3 billion tonnes of emissions.

FACT

Greenhouse gas emissions associated with the Scarborough Energy Project are estimated to be approximately 880 million tonnes of carbon dioxide-equivalent over the life of the activity.

This estimate is sensitive to a number of factors including production rate, which is subject to uncertainty associated with reservoir and process performance and will change over the life of the facility.

MYTH

The Scarborough Energy Project will pay zero revenue to WA.

FACT

The project is expected to generate an estimated A$52.8 billion in taxation and royalty payments to the Australian and Western Australian governments between 2024 and 2056^.

Before the project has been completed, Woodside has awarded more than A$3.6 billion in contracts to local Western Australian businesses and has made a commitment to spend more than A$90 million with Karratha businesses alone.

_{^ ‘Economic impact of the proposed Scarborough Energy Project’, ACIL Allen, March 2024 (woodside.com/docs/default-source/our-business---documents-and-files/scarborough/economic-impact-of-the-scarborough-energy-project_summary-brochure.pdf).}

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Scarborough Energy Project

MYTH

FACT

Additional Facts

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Taxes paid and benefits to the Australian economy

Scarborough project: Managing emissions