Woodside Petroleum Ltd. said Monday that it would go ahead with the $12 billion Scarborough liquefied natural gas (LNG) project, sanctioning a large dry gas field off the coast of Western Australia and an expansion at its Pluto export facility. 

The Scarborough field is about 230 miles off the coast. It would feed a second train at Pluto, located near Karratha, Western Australia, with the capacity to produce 5 million metric tons/year (mmty) of LNG, boosting the facility’s overall output to about 10 mmty. The project’s first cargo is targeted for 2026.

“The Scarborough reservoir contains only around 0.1% carbon dioxide, and Scarborough gas processed through the efficient and expanded Pluto LNG facility supports the decarbonization goals of our customers in Asia,” said...