Woodside Petroleum has revealed that the cost of its cancelled Browse LNG onshore processing plant at James Price Point would have exceeded US$ 80 billion.
Plans were made redundant in April this year after the company announced that the project was not commercially viable. In a statement, Roger Martin, vice president of corporate affairs at Woodside, said that the project was simply “uneconomic”.
“The challenge would have been limiting our losses in an environment in which almost all major resources projects in Australia have increased significantly.”
Woodside now turns its attention to floating LNG (FLNG) projects to process gas from the Browse Basin gas field, which it jointly owns with Shell, BP, PetroChina and Japan Australia LNG. Shell has already embraced the use of FLNG technology to develop its Prelude project. Earlier this month, the company floated its Prelude FLNG facility out of the Samsung Heavy Industries construction yard.
A WA Parliamentary inquest into FLNG heard that the difference between an onshore and an offshore Browse project stood at 1%, with the latter posing a more viable investment.
Edited from various sources by Ted Monroe
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/18122013/woodside_reveals_cost_of_canalled_onshore_plant/