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Australia’s Woodside (WPL) jumps on $12bn LNG project approval

By Mensholong Lepcha

03:57, 23 November 2021

Woodside Petroleum logo
Woodside Petroleum logo – Photo: Shutterstock

Australian energy major Woodside Petroleum's stock price rose as much as 4.2% on Tuesday on the back of its merger with BHP’s oil-and-gas unit and approval of its billion-dollar liquefied natural gas (LNG) project.

On Monday, Woodside Petroleum announced it agreed to merge with mining giant BHP Group’s petro-assets to create a global top 10 oil and gas producer.

The company added that it is currently pursuing a secondary listing on the New York Stock Exchange through an American depository receipt arrangement.

Scarborough and Pluto Train 2 approval

Woodside Petroleum also announced the approval for its $12bn Scarborough and Pluto Train 2 developments.

Scarborough gas processed through Pluto Train 2 will be one of the lowest carbon intensity sources of LNG delivered to customers in North Asia, with first LNG cargo targeted for 2026, said Woodside Petroleum in a statement.


2,036.31 Price
-0.380% 1D Chg, %
Long position overnight fee -0.0196%
Short position overnight fee 0.0114%
Overnight fee time 22:00 (UTC)
Spread 0.30


37,811.80 Price
+0.060% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00


0.61 Price
+0.020% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

Oil - Crude

75.68 Price
-2.520% 1D Chg, %
Long position overnight fee -0.0165%
Short position overnight fee -0.0054%
Overnight fee time 22:00 (UTC)
Spread 0.030

Last week, Woodside agreed to sell 49% stake in the Pluto Train 2 joint venture, which includes a LNG train and domestic gas facilities, to Global Infrastructure Partners.

“Company-making project”

“Nonetheless, for Woodside, Scarbrough plus Pluto Train 2 is a company-making project. It will bring over 20 years of strong cashflow, and locks in production growth through to 2030 and beyond. The next question is around participation. Having recently brought a partner into Pluto Train 2, does it intend to do the same with Scarborough?” said Daniel Toleman, senior analyst at energy consultancy firm Wood Mackenzie.

On Tuesday, Woodside Petroleum stock was on track to post its biggest intraday gain in nearly a month.

Read more: Australia’s Woodside slashes gas reserve estimates

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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