Australia's Woodside to abandon $45 billion LNG project

April 12, 2013 at 2:47 PM
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CANBERRA, Australia, April 12 (UPI) -- Australia's Woodside has decided to abandon its $45 billion liquified natural gas project.

The report comes in the wake of Woodside Petroleum's board of directors "doing their sums" on the $45 billion Browse LNG project, the Australian Broadcasting Corp. reported of Friday on its AM program.

According to the report, Woodside Petroleum intends to make an announcement to the stock exchange on the abandoned project at James Price Point, north of Broome in Western Australia. When ABC contacted Woodside about the project, it issued a terse "no comment."

The loss of the project is significant, as the Browse Basin's estimated reserves are potentially bigger than the North West Shelf, currently Australia's largest oil and natural gas development.

Resources analyst David Lennox commented that he expected Woodside to explore other options, such as a floating LNG facility, remarking, "We'll probably actually see a delay now in further developments around the LNG network up on the north coast of Western Australia.We do think that Woodside will just at this point in time actually delay making a final decision and they will eventually again approach the West Australian government to actually source a floating platform."

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