Cyclone and Maintenance Hit LNG Production: Woodside Q2 Output Drops 18%

Australia’s leading natural gas exporter, Woodside Energy Group Ltd., reported a production drop of over 25% for the second quarter, attribute to a cyclone and scheduled maintenance at its Pluto LNG export facility.

According to a regulatory filing on Wednesday, gas production fell 27% year-over-year, bringing total output down 18% to 41.3 MMboe. However, average realized prices jumped 44% during the quarter, driven by global supply disruptions, including the closure of the Strait of Hormuz which affected rival LNG shipments from Qatar.

CEO Liz Westcott noted strong market demand, stating that customers are eager for new Australian gas supply and are actively seeking offtake agreements and opportunities to invest in upcoming projects.

Woodside confirmed that its Scarborough development in Western Australia is now 98% complete, with first LNG production anticipated in the final quarter of the year. Additionally, the company is targeting first oil from Mexico’s Trion field in 2028 and first shipments from Louisiana LNG by 2029.

Rohan Bowater, an analyst at Accela Research, remarked that successfully launching Scarborough in the fourth quarter is critical to restoring the company’s volume growth trajectory.

Woodside adjusted its full-year production guidance to a range of 174 million to 185 MMboe. The producer noted that global supply constraints bolstered LNG prices compared to the prior quarter, with delayed pricing effects from the second quarter expected to materialize by September.

Following a rise in Brent crude prices, Woodside’s shares increased by up to 1.2% to A$32.68 in Sydney trading.