Woodside (ASX:WPL) share price on watch following sell-down of onshore LNG asset

What did the company announce to the ASX?

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Key Points

  • The Woodside share price closed 0.16% down to $25.20 on Tuesday
  • The company has announced the sell-down of its 49% stake in Pluto Train 2
  • The LNG asset is on track for its first cargo in 2026

The Woodside Petroleum Ltd (ASX: WPL) share price will be one to keep an eye on this Wednesday morning. This comes after the company advised it completed the sale of its onshore LNG processing facility located in Western Australia.

At yesterday’s closing bell, the oil and gas company’s shares finished the day down 0.16% to $25.20.

Woodside completes sell-down of Pluto Train 2 interest

Investors will be keen to watch how the Woodside share price reacts today following the company’s announcement last night.

In a statement to the ASX, Woodside advised it has finalised the sale of Pluto Train 2 Joint Venture to Global Infrastructure Partners (GIP). This will see a 49% non-operating participating interest transferred to GIP. The remaining 51% stake will be controlled by the energy giant’s subsidiary Woodside Burrup Train 2 A Pty Ltd.

The deal was originally announced on 15 November 2021 after both parties signed a sale and purchase agreement.

A week later, the final investment decision was approved for the Pluto Train 2 Joint Venture Scarborough developments. The landmark achievement also included new domestic gas facilities and modifications to Pluto Train 1.

The estimated capital expenditure for the development of Pluto Train 2 is estimated to be around US$5.6 billion (A$7.8 million).

Following the new joint venture arrangement, GIP will now need to fork out US$822 million (A$1.14 billion) in capital expenditure.

The first LNG cargo from Pluto Train 2 is being targeted to go online sometime in 2026.

Woodside CEO Meg O’Neill touched on the close collaboration with its co-party, saying:

GIP brings established, global capabilities to the Pluto Train 2 Joint Venture which will support delivery of a world-class project.

The development of Scarborough gas through Pluto Train 2 is expected to deliver significant value to our shareholders, create thousands of jobs and deliver energy to domestic and international customers for decades to come.

About the Woodside share price

Over the past 12 months, the Woodside share price has fallen by 6%. However, year to date, its shares have risen by 15% following a surge in oil prices.

Based on today’s price, Woodside commands a market capitalisation of roughly $24.43 billion with approximately 970 million shares on its registry.

Motley Fool contributor Aaron Teboneras owns Woodside Petroleum Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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