The Woodside Petroleum Ltd (ASX: WPL) share price is edging lower today following a company announcement on its Scarborough Project.
At the time of writing, the energy company's shares are fetching $33.57 each, down 1.06%.
By comparison, the S&P/ASX 200 Index (ASX: XJO) is also down 0.68% so far today to 7,476 points
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Scarborough receives key primary approvals
Despite the company releasing a positive media statement, investors are sending the Woodside share price lower.
In its release, Woodside advised it had received approvals to progress its joint venture US$12 billion Scarborough and Pluto Train 2 developments
The key primary approvals were granted from the Commonwealth-Western Australian Joint Authority to support the execution of the Scarborough Project.
This relates to an offer received for the licence to construct and operate the Scarborough pipeline in Commonwealth waters.
In addition, approval was also given for the Scarborough Field Development Plan (FDP), enabling Woodside to commence petroleum recovery operations.
The company noted that these milestones follow final investment decisions made in November 2021 to approve Woodside's US$6.9 billion stake.
First gas production for the Scarborough project is targeted for 2026 and is expected to produce eight million tonnes annually. The gas field will be connected through a 430-kilometre pipeline to the onshore Pluto gas plant for processing.
This will be one of the lowest carbon intensity sources of LNG delivered to customers in north Asia, the company says.
The Scarborough Joint Venture sees Woodside with 73.5% ownership and BHP Group Ltd (ASX: BHP) with the remaining 26.5% interest.
Woodside CEO Meg O'Neill commented:
Developing Scarborough delivers value for Woodside shareholders and significant long-term benefits locally and nationally, including thousands of jobs, taxation revenue and energy security here and abroad.
The Scarborough reservoir contains only 0.1% carbon dioxide, and Scarborough gas processed through the efficient and expanded Pluto LNG facility supports the decarbonisation goals of our customers in Asia.
Woodside share price summary
The Woodside share price is up almost 40% over the last 12 months and is more than 53% higher in 2022 so far.
The company's shares have accelerated on the back of rising oil prices, fuelled by the war in Ukraine. This has led the Woodside share price to hit a fresh 52-week high of $34.60 last month.
Woodside has a price-to-earnings (P/E) ratio of 16.5 and commands a market capitalisation of roughly $33 billion.
