Perth-based energy giant Woodside has announced that it is one step closer to making a final decision on its Browse gas project at the end of 2016.
The company revealed that as a participant in the Browse FLNG Development it has reached an agreement to enter the front-end engineering and design (FEED) phase for the proposed development.
The FEED phase entry decision follows the Browse Joint Venture participants executing the Browse FLNG Development Domestic Gas and Supply Chain Key Principles Agreement (KPA) with the State of Western Australia.
According to the company’s ASX Announcement, Browse LNG volumes will be marketed on an equity basis from Woodside’s growing global LNG portfolio.
“We are excited to be moving into the next phase of the Browse FLNG Development using FLNG technology. In particular, we acknowledge the support of key government stakeholders and especially commend the current and previous Ministers responsible for resources for their consistent, clear and long-term approach to oil and gas development,“ said Woodside CEO Peter Coleman.
“We will continue to work with governments, Australian industry, local communities and other relevant stakeholders to realise potential opportunities from this mega project.”
Browse LNG was planned as an enormous onshore plant at James Price Point on the remote Kimberley coast, but the Browse Joint Venture participants scrapped the initial plan just weeks before a final investment decision was due, after finding it would cost at least $80 billion.
The Browse FLNG Development concept is based on three FLNG facilities using Shell’s FLNG technology and Woodside’s offshore development expertise to commercialise the Brecknock, Calliance and Torosa fields.
Woodside’s participating interest in the Browse resources will be 30.6 percent.
The partners also announced that they had entered into a new Joint Operating Agreement (JOA) that sets out the governance and management arrangements for the assets of the Browse Joint Venture and supports the progression of the proposed development to FID.
Woodside remains operator of the Browse FLNG Development.