New agreement on WA FLNG gas supply

The WA government is close to an agreement on the domestic
gas route for Woodside’s Browse FLNG project.

The West Australian reported that the agreement will be
reached thanks to relaxation on demands for gas from the project, which will
amount to a trillion cubic feet of gas to the WA market.

The relaxed terms of the agreement will ensure a net
increase to the state domestic gas supply.

It has also been suggested royalties from Browse Basin gas
will result in immediate benefits to the state, with the Torosa project mostly located
in WA waters, while the Commonwealth resource rent tax would take several years
before generating income to the state.

Announcement about the agreement is expected to be released
in several weeks.

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