Regional LNG: Woodside plans Browse Basin LNG plant
Tuesday, April 11 2006 - 11:14 PM WIB
The energy giant said Tuesday it was well advanced in its plans to construct a multi-billion-dollar LNG plant that will process gas from deep below the Indian Ocean north of Broome.
Chief executive Don Voelte also revealed Woodside had had discussions with Japan's largest explorer, Inpex, on a joint development of their Browse Basin gas reserves.
Inpex executives earlier this year told The Australian they were considering an LNG plant, later estimated to cost $8billion, for the Ichthys gas reserves, about 200km off the Kimberley coast.
They said then that Inpex was interested in securing a partner for the development which could produce between five and six million tonnes of LNG a year, or around 10 per cent of the Japanese market.
Voelte told Woodside shareholders at the company's annual meeting in Perth that several development options were being considered including an offshore facility based near Scott Reef and an onshore facility along the north west coast with an offshore platform and pipeline.
"At this stage we think Browse can support a plant with a capacity of up to 14 million tonnes of LNG a year ... we are confident we can bring it into production in the window 2011-2014," he said.
Browse contains an estimated 20 trillion cubic feet and Woodside as operator is partnered by BP Plc, BHP Billiton, Shell and Chevron.
Later Voelte indicated current thinking favoured a development placed in shallow water in the Scott Reef lagoon because this would be less costly than bringing the gas onshore in a remote and environmentally sensitive area.
He would not put a cost estimate on the Browse project.
"Browse is one chunk of good business for us," he said, confirming Woodside's market intelligence suggested foundation Browse customers could come from Japan, China, Korea, the US and India.
He also disclosed Woodside was in discussions with Inpex which in January told The Australian it was considering an LNG development for its Ichthys reservoir, which is about 45km from Scott Reef.
Co-operation made sense but any joint arrangement with Inpex would have to take into account the Japanese company wanting to manage the Ichthys venture on its own.
"I'd like to find a way where we can all benefit financially, but respect their rights," Mr Voelte said. The North West Shelf gas project - Australia's biggest resources development with an investment already of more than $14billion - currently produces more than 11 million tonnes of LNG a year, but output is being increased to more than 16 million tonnes with a $2billion investment.(*)