Woodside Says May Build 3 Floating LNG Plants for Browse



Reuters

DAEGU, South Korea Oct 15 (Reuters) – Woodside Petroleum could build three floating liquefied natural gas (LNG) plants for its Browse project, the chief executive of Australia's biggest oil and gas firm said on Tuesday.

The firm, which plans to make a final investment decision on the project in 2015, scrapped a $45 billion onshore proposal for Browse this year and opted for cheaper floating LNG plants.

"The next big signal for the marketplace is when the project enters front end engineering and design which we hope will be in the middle of next year," CEO Peter Coleman told Reuters.

"The basis is three floating vessels for Browse. That will be firmed up as we finalise the basis of our design."

With $190 billion worth of LNG projects underway, Australia is set to become the world's largest LNG exporter by the end of the decade, but more than half of the seven LNG plants currently under construction have suffered large cost blowouts.

According to analyst estimates, choosing to use floating LNG technology would mean a cost savings of 20 percent.

Woodside has already signed on Shell, a joint venture partner and considered to be the global front-runner in floating LNG technology, to develop the Browse gas fields. Other joint venture partners include BP Plc, PetroChina , Mitsui & Co and Mitsubishi Corp.

The Australian company also plans to take part in the next bidding round for offshore exploration blocks in Myanmar where Woodside's expertise lies, Coleman said, in addition to the two blocks that the company participated through joint ventures.

"We are running seismic tests and hope to drill a well either next year or 2015," Coleman said.

 



WHAT DO YOU THINK?


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

RELATED COMPANIES
Company: BP plc more info
Operates 32 Offshore Rigs
 - Exxon, BP Targeted in NYC Suit That Relies on 'Nuisance' Theory (Jan 10)
 - Owners of Louisiana-Illinois Pipeline Eye Reversal Next Steps (Dec 21)
 - Canadian Offshore Oil Interest Grows As Pipeline Woes Sink Alberta Prices (Dec 20)
Company: Shell more info
Operates 29 Offshore Rigs
 - Shell Looks Beyond Road Fuels to Secure Future of Refining (Nov 06)
 - API Panel Member: Voluntary Methane Program Forthcoming (Oct 06)
 - Eni Bets Big on Zohr Explorer Finding New Treasure (Oct 06)
Company: Woodside more info
Operates 3 Offshore Rigs
 - Chevron Starts LNG Output at Australia's Wheatstone (Oct 09)
 - Global LNG: Faltering Supply Prompts Short-Covering Price Rally (Aug 11)
 - Woodside Sees Output Growing 15 Pct Over Next Three Years (May 23)
Company: PetroChina more info
 - Sources: PetroChina To Take On Global Rivals In Major Expansion Drive (Dec 18)
 - Media: Three Dead After Suspected Gas Leak At PetroChina Refinery (Nov 20)
 - PetroChina, Beijing Firm Doubling LNG Storage in Caofeidian as Demand Rises (Nov 06)
Company: Mitsui more info
 - Japan's Mitsui OSK Targets 26% Stake In Swan's Indian LNG Unit (Sep 18)
 - As Rivals Circle, Japan Boosting Firepower To Buy Global Energy Assets (Sep 23)
 - Gas Glut Upends Global Trade Flows As Buyers Find New Leverage (Aug 16)
Company: Mitsubishi more info
 - Mitsubishi Heavy Bets on New US Turbomachinery Demand (Feb 17)
 - Shell-Led Group Delays Decision On Canada Gas Export Plan (Jul 12)
 - Japanese Banks Expand To Ranks of World's Biggest Energy Lenders (Jun 09)