Oil and gas producer Woodside has this morning announced it will begin reviewing alternative Browse development options for its James Price Point project including floating LNG.
The announcement comes after much speculation over the past few days around a move to abandon its proposed gas processing hub at James Price Point.
In a statement Woodside said the current development concept no longer meets the company’s commercial requirements for a positive final investment decision.
Located North of Broome in Western Australia, this project was planned to be larger then the North West Shelf which is currently Australia’s largest oil and gas development.
The plant’s aim was to enable gas from the Browse Basin to be processed off the north-west coast.
A tender evaluation has since been conducted on all upstream and downstream scope of works which concluded the project in its current form would not provide Woodside the commercial returns required.
Instead Woodside will begin determining the commercial viability of floating technologies, pipeline options to existing LNG facilities in the Pilbara or a smaller onshore option.
To date there has been broad opposition to the $45 billion Browse project from environmentalists, residents and businesses.
The original James Price development was also earmarked for the creation of thousands of jobs and was expected to deliver significant royalties to WA.