Woodside chairperson Peter Coleman
Photo by: Bloomberg
PERTH (miningweekly.com) – Australian oil and gas producer Woodside has unveiled plans to potentially incorporate its Browse liquefied natural gas (LNG) project into the North West Shelf (NWS) project.
Woodside chairperson Peter Coleman said at the company’s annual general meeting at the end of last week that incorporating the Browse LNG project into the NWS project,would basically double the life of NWS.
“Using the existing facilities has the dual advantage of ensuring the most efficient use of capital, while minimising risk by relying on proven technology. As operator of both Browse and the NWS, Woodside is well-placed to make this happen, and we are talking to joint venture participants in both assets,” Coleman said.
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.
Coleman noted that while it was still early days for the proposed amalgamation of Browse and the NWS, it was a “compelling option”, and could be achieved at a competitive price and within a reasonable timeframe.
Meanwhile, Woodside is aiming to increase its production by about 15% between 2017 and 2020 from existing operations and currently sanctioned projects.
These projects include the Wheatstone development, which will add more than 13-million barrels a year of production, as well as the Pluto LNG operation, where Woodside is evaluating opportunities to maximise investment by undertaking further capacity enhancements and mid- to large-scale expansions.
“We are looking at how we create value through accelerating development time frames and production, capturing unallocated resources from the Carnarvon and Browse basins and creating new markets.”
As part of Woodside’s drive to grow its LNG market, the company is also finalising plans to support supplying LNG from the Pluto project to fuel local mining and marine projects, which currently rely on diesel.
“Supporting the development of LNG as a low-emissions transport fuel has both economic and environmental benefits for Australia, as well as potential long-term commercial benefits for Woodside. To bring these opportunities together, we’re focused on creating the Burrup Hub that will maximise value from existing facilities,” Coleman said.
“Woodside is in a unique position in the Pilbara of having equity in both key onshore infrastructure and offshore resources. In fact, we’re the only company with equity in both the largest undeveloped offshore resource and the two onshore plants that have the most ready expansion capability.”