Sydney (Platts)--18Dec2012/515 am EST/1015 GMT
Western Australia's Environmental Protection Authority said Tuesday that it has given the go-ahead for Woodside Petroleum to develop the foundation Browse LNG project at the James Price Point precinct, declaring it a "derived proposal." The Department of State Development's strategic proposal, recently approved by Environment Minister Bill Marmion, allowed for multiple LNG users producing as much as 50 million mt/year to be co-located at James Price Point, avoiding the need for multiple LNG processing sites to spread along the Kimberley coast. The precinct still requires final environmental approval from Australian federal Environment Minister Tony Burke. The state's strategic proposal allowed for the consideration of the cumulative environmental impact of derived proposals within the precinct, which would be subject to separate conditions. EPA Chairman Paul Vogel and Deputy Chairman Robert Harvey have now determined that Woodside's proposal fits within the strictly defined precinct footprint and could be declared a derived proposal, the authority said in a statement Tuesday. Article continues below...Request a free trial of: LNG DailyLNG Daily is essential reading as LNG supply dynamics continue to change in big markets like Japan, China, India and the U.S. This premier independent news publication for the global LNG industry gives readers information on every aspect of the global market from new LNG supply projects to gas quality issues.
Western Australia's Environmental Protection Authority said Tuesday that it has given the go-ahead for Woodside Petroleum to develop the foundation Browse LNG project at the James Price Point precinct, declaring it a "derived proposal." The Department of State Development's strategic proposal, recently approved by Environment Minister Bill Marmion, allowed for multiple LNG users producing as much as 50 million mt/year to be co-located at James Price Point, avoiding the need for multiple LNG processing sites to spread along the Kimberley coast. The precinct still requires final environmental approval from Australian federal Environment Minister Tony Burke. The state's strategic proposal allowed for the consideration of the cumulative environmental impact of derived proposals within the precinct, which would be subject to separate conditions. EPA Chairman Paul Vogel and Deputy Chairman Robert Harvey have now determined that Woodside's proposal fits within the strictly defined precinct footprint and could be declared a derived proposal, the authority said in a statement Tuesday.
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LNG Daily is essential reading as LNG supply dynamics continue to change in big markets like Japan, China, India and the U.S. This premier independent news publication for the global LNG industry gives readers information on every aspect of the global market from new LNG supply projects to gas quality issues.
More than 1,800 public comments on Woodside's proposal to build and operate an LNG processing facility at the site were submitted to the EPA. Woodside sought approval for the production of 25 million mt/year of LNG, although the company's foundation facility is being designed to produce 12 million mt/year from three trains. "Following rigorous evaluation of Woodside's proposal, no new environmental issues were raised that had not been adequately addressed in the strategic proposal nor was there any significant new or additional information that justifies reassessment," Vogel said. Woodside is currently evaluating tender bids and undertaking an assurance process to determine costs and economics for the foundation project, with a view to making a final investment decision in the first half of 2013. Local industry observers are expecting the development to cost as much as A$45 billion ($47 billion). Woodside and its Browse joint venture partners were earlier this year granted a one-year extension of a government-imposed deadline to formally approve an LNG project based on their Torosa, Calliance and Brecknock offshore gas fields. The original deadline was set by the Australian federal government in 2009 under the terms of lease renewal conditions, which required the joint venture to spend A$1.25 billion on front-end engineering and design, and to take FID on the proposed LNG project by the middle of 2012. The Western Australian state government has designated the greenfields site at James Price Point as a processing precinct for all the gas to be developed in the offshore Browse Basin. Under its retention lease conditions, the Woodside-led joint venture was required to build its onshore liquefaction facilities at James Price Point, unless it could demonstrate an alternative development concept was likely to be commercially viable at an earlier time. The James Price Point site is in an environmentally and culturally sensitive area, however, and has been mired in controversy in recent years as some local landowners have refused to support a A$1 billion social and economic benefits package signed last June by Woodside and the Goolarabooloo Jabirr Jabirr native title claimant group. The location of the gas processing hub has also been criticized by environmental activists. Anglo-Australian resources giant BHP Billiton earlier this month agreed to sell its stake in the Browse joint venture to PetroChina. Once finalized, that deal would leave the joint venture in the hands of operator Woodside, BP, Japan Australia LNG and Shell.--Christine Forster, christine_forster@platts.com--Edited by Deepa Vijiyasingam, deepa_vijiyasingam@platts.com
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