INPEX to Acquire PetroChina Stake in Australian Browse Gas Project

INPEX Mirai Upstream Pty Ltd has signed a deal to buy PetroChina International Investment (Australia) Pty Ltd's 10.67 percent stake in the Browse Basin joint venture (JV).

The transaction between the INPEX Corp (INPEX) and China National Petroleum Corp subsidiaries would make Japan's INPEX a minority owner in the Brecknock, Calliance and Torosa gas fields offshore Western Australia.

"The development of Browse has the potential to make a significant contribution to energy security in Australia and in the Asia-Pacific region", INPEX said in an online statement.

"The Browse fields, which were discovered between 1971 and 2000, contain a combined contingent resource of about 13.9 trillion cubic feet of dry gas and approximately 390 million barrels of condensate".

The project is operated by Australia's Woodside Energy Group Ltd. Woodside Browse Pty Ltd owns a 30.6 percent stake. BP Developments Australia Pty Ltd is the majority owner at 44.33 percent. Japan Australia LNG (MIMI Browse) Pty Ltd holds 14.4 percent.

The partners expect to produce 11.4 million tons a year of liquefied natural gas, liquefied petroleum gas and domestic gas, as well as 50,000 barrels per day of condensate.

The project, which has yet to reach the front-end engineering and design stage, involves delivering gas from the three fields to the existing Karratha Gas Plant via a pipeline of about 900 kilometers (559.23 miles) connected to 2 floating production storage and offloading facilities.

"A carbon capture and storage solution has been incorporated into the project design and is expected to enable a reduction of 53 million tonnes CO2e [carbon dioxide equivalent] of greenhouse gas emissions as compared to the project's 2019 Scope 1 emissions estimate", Woodside said in an online statement Monday in which it reported projections for economic returns from the project.

The commissioned assessment by Deloitte projects yearly impacts of AUD 2.9 billion ($2.07 billion) to Australia's gross domestic product and AUD 3.1 billion to Western Australia's gross state product.

"Browse gas could also play a role in helping Australia's trading partners in Asia Pacific reduce their reliance on coal-fired power while also supporting energy security in the region", Woodside said in the statement.

Chief executive Liz Westcott said, "Browse is Australia's biggest undeveloped offshore gas resource and represents a major opportunity for the nation at a time when energy security matters more than ever".

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