Regional LNG: Start-up of NWS' 5th LNG train delayed: Report

Woodside Petroleum Ltd., Australia's No. 2 oil and gas company, said its delayed the date it expects the North West Shelf venture to start up a fifth production line at its liquefied natural gas plant in Western Australia, Bloomberg reported.

Woodside had been projecting a start-up date for the fifth line in 2006, based on a decision to proceed with the expansion in late 2003, said Rob Millhouse, a spokesman for the company.

``It's become clear to us in the last few weeks that the decisions necessary in the venture for that to happen won't occur'' by the end of the year, Millhouse said. The market outlook and other reasons have resulted in Woodside modifying its projections to take into account a 2007 or 2008 start-up, he said.

Perth-based Woodside, 34 percent-owned by Royal Dutch/Shell Group, plans to spend more than A$5 billion ($3.3 billion) in the next five years to almost double output. The company may report first-half profit was little changed when it releases its results this morning.

One of the six partners in the North West Shelf, BP Plc, may not have supported a 2006 start-up date for a fifth production line, the Age newspaper reported, citing people in the industry it didn't name. BP is trying to find buyers for LNG from its planned Tangguh project in Indonesia, a competitor to the North West Shelf, it said.

BP's office in Melbourne yesterday denied the company was slowing plans for the North West Shelf expansion, the Age said.

The North West Shelf venture also includes BHP Billiton, ChevronTexaco Corp., Royal Dutch/Shell Group and Japan Australia LNG Pty.(*)