The Browse LNG project in Australia, proposed by Woodside Energy, is set to cost about $35 billion, a new report commissioned by the Australian oil and gas major showed on Monday.
Woodside first proposed the Browse to North West Shelf (NWS) Project to deliver natural gas from the Calliance, Torosa, and Brecknock fields to the existing Karratha Gas Plant back in 2018. Cost estimates as of 2019 pointed to US$20 billion (AUS$27.3 billion) of total investment.
However, the project, which has been long delayed due to a carbon capture and storage (CCS) component and more approvals needed, is now set to cost about US$35 billion, or AUS$48.7 billion, according to a new economic impact assessment by Deloitte Access Economics.
The Browse project proposes to connect the natural gas fields via a 900-kilometre pipeline, connected to two floating production storage and offloading facilities, while a CCS solution has been incorporated into the offshore design.
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Production capacity at Browse is planned to be 11.4 million tonnes per annum (LNG, LPG, and domestic gas) and a peak condensate production rate of 50,000 barrels per day.
The project is currently in the concept definition phase, and key activities continue in support of progress towards front-end engineering and design entry, Woodside said today.
The Deloitte modeling and assessments have found that the Browse project would deliver a long-term uplift of around US$106 billion (AUS$147 billion) in gross state product for Western Australia and US$102 billion (AUS$141 billion) in gross domestic product nationally, Woodside said.
The project may have good chances to pass all pre-development and pre-construction stages in the coming years as Australian and Asian energy demand is rising, while the Middle Eastern crisis has created new energy security concerns among buyers.
Amid the global LNG supply crisis, Australia’s government last week mandated energy companies in the country to set aside 20% of their natural gas output for the domestic market to avoid supply shortages along the east coast.
By Charles Kennedy for Oilprice.com
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