Friday, July 31, 2009

Piping LNG to the Pilbara or a floating facility

A subsea pipeline to the Pilbara is Woodside Petroleum’s main option for the $30 billion Browse LNG project if it cannot convince its wavering partners to support an onshore plant at James Price Point. Mr Barnett said the government would not grant the necessary approvals, such as pipeline easements, for such a plan to proceed. And though the state government would have no jurisdiction to stop the alternative of a floating LNG facility at Browse, he said the technology was only suitable for smaller LNG projects, such as Shell’s proposed $3 billion Prelude FLNG venture nearby. Nonetheless, Shell and Woodside have in the past identified FLNG technology as a possible option for both the Browse project and the big but remote Sunrise LNG project in the Timor Sea. Mr Barnett said it was time Woodside’s Browse partners – Chevron, Shell, BHP Billiton and BP – accept reality and back the Kimberley hub. Chevron and Shell are understood to be the main parties still unconvinced that the onshore hub is the best option,(Excerpts from WA Business News 30th July 2009)

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