Doubts: Kimberley LNG plant
Browse LNG in doubt due to costs
Construction of a liquefied natural gas processing plant in western Australia looks increasingly unlikely due to escalating costs and discord among joint venture partners.
The cost of the facility in the environmentally sensitive Kimberley region, which would process gas from the offshore Browse field, has blown out to A$50 billion (US$40.3 billion), the Australian paper said citing an informed source.
Woodside's partners in the project are leaning towards having the gas processed at the existing Woodside-operated North West Shelf plant in Karratha, according to a Reuters report.
"Woodside's partners at Browse are refusing to fall in line with the Perth company's stated preference to build an LNG plant in the Kimberley," The Australian said.
Woodside in April signed an agreement with the Western Australia state government and traditional landowners in the Kimberley region to allow for construction of the plant.
Browse is 50% owned by Woodside.
Its partners are supermajors BP, Chevron, and Shell and Australian giant BHP Billiton.