McGowan welcomes Woodside's Browse plan

PERTH (miningweekly.com) – Western Australia’s newly elected Premier Mark McGowan has welcomed plans by oil and gas producer Woodside to incorporate its Browse liquefied natural gas (LNG) project into the North West Shelf (NWS) producing asset.

Woodside CEO Peter Coleman recently revealed plans to incorporate the Browse project into the NWS asset, effectively doubling the life of NWS by using the existing NWS infrastructure to access the Browse LNG.

Woodside in 2016 shelved plans for a floating LNG (FLNG) concept for Browse, citing project economics.

The Browse FLNG development concept was based on three FLNG facilities using project partner Shell’s technology and Woodside’s offshore development expertise to commercialise the Brecknock, Calliance and Torosa fields, which have contingent resources of 15.4-trillion cubic feet of dry gas and 453-million barrels of condensate.

“I applaud the decision to the rooftops, as it means Karratha has a long-term future and it means more gas for the local pipeline,” McGowan said at the Australian Petroleum Production & Exploration Association (Appea) conference in Perth, on Monday.

“It’s a sensible and reasonable decision to use existing infrastructure to ensure domestic supply and jobs. It is a credible decision by a local company and it makes sound economic sense,” the Premier said.

Meanwhile, McGowan told delegates at the Appea conference that the recent stoush over a potential mining tax on the iron-ore sector in Western Australia, held a number of lessons for participants in other sectors of the industry.

Noting that while the Nationals party's call for an additional tax on iron-ore was widely condemned by the industry and political parties alike, it had resonated with some members in the communities.

McGowan noted that in order for the resources and oil and gas sectors to maintain a good working relationship with the communities in which they operate, the sector could encourage loyalty by creating local job and apprenticeship opportunities, as well as using local suppliers.

Oil and gas proponents looking to enter Western Australia also had to be aware of the state’s domestic gas reservation policy, which has been in place since 2006.