Browse gas suddenly owned by WA

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From the AFR:

…Woodside dropped plans last year for an onshore LNG plant on the Kimberley coast for its Browse gas resource, which would have cost a huge $80 billion or more. Instead, the venture, which includes Shell and PetroChina, is reworking the project to use floating LNG, avoiding the need to develop the controversial James Price Point gas hub near Broome. Using FLNG instead of onshore LNG is expected to halve the cost of the gas development.

Part of Browse gas, however, lies in WA state waters, and the WA government has yet to allow floating LNG to be used.

In a significant development this week, the boundary between commonwealth and WA waters is being withdrawn, placing more of the biggest gas field in the Browse venture into WA waters and causing a further complicating factor for the Woodside venture as it seeks to advance its floating LNG plan.

Mr Logan said on Thursday in Parliament that now up to 50 per cent of the gas in the Torosa field may lie in WA waters.

I understand the WA government’s objections but the gas is not going to be developed without FLNG.

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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.