Woodside aims for 2015 Browse FLNG

Advertisement
images

From the AFR:

Woodside Petroleum has revealed it is aiming for a go-ahead in mid-2015 for a huge floating liquefied natural gas project for its Browse gas in north-west Australia involving three of the massive vessels.

The outline of the project, unveiled in Woodside’s full-year results presentation on Wednesday, involved phasing capital expenditure to reduce risk and provide early cash flows from the first vessel while the others were still in development, the company said.

The plans for the project came as Woodside reported a 7.5 per cent increase in first-half net profit to $US873 million ($960.08 million), while underlying profit dipped 1.5 per cent to $US852 million, missing most analysts’ forecasts.

This technology is untried so I’d expect some serious delays. It’s good news for the trade account and some extra tax revenue but that’s about all. Korea, on the other hand, will enjoy more Australian mining boom.

Advertisement
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.