A spokeswoman for Mr Barnett said the federal government was "very much aware" of WA's position that the gas needed to come onshore at James Price Point. She said the Premier would not identify which of the Browse partners wanted to use FLNG.
In an interview with The Australian last month, Shell's director of projects and technology, Matthias Bichsel, would not rule out considering FLNG as a development option for Browse. "All the various opportunities in Australia, they should be illuminated through different lenses. That's all I can say at this moment," Dr Bichsel said when asked if FLNG could solve the debate over Browse.
Dr Bichsel stressed FLNG technology was an ideal solution for gasfields that were far from shore, and where potential coastal LNG plant sites had high levels of environmental or social sensitivity.
"FLNG allows you, from an environmental point of view, to (produce LNG) without disturbing coastlines or building a big facility in some pristine environment.
"Where you have that, it may help you with a solution."
Woodside declined to comment.
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ReplyDeleteFears mount for Woodside's $40bn Browse gas project
BY: ANDREW BURRELL AND NICOLAS PERPITCH
From: The Australian
November 13, 2012 12:00AM
WOODSIDE Petroleum has dismantled its work compound at James Price Point in the Kimberley amid mounting speculation that its planned $40 billion Browse gas project will be developed offshore using floating LNG technology.
But the company doused speculation among Kimberley locals and environmentalists that the move signalled it had abandoned James Price Point as a preferred site, saying it was demobilising work crews before the wet season.
However, Woodside did not remove the 10,000sq m compound that contains machinery, transportable buildings, a generator and a medical station before last year's wet season.
The move comes as Woodside evaluates the tender bids for construction of the Browse project amid estimates that cost of a greenfields project in the Kimberley is likely to be prohibitive.
The company is expected to have finished analysing the tenders within weeks and the Browse joint venture will be in a position to make a final decision on James Price Point during the first half of next year.
West Australian Premier Colin Barnett yesterday confirmed he was lobbying against oil and gas giant Royal Dutch Shell's mounting push to stop the gas coming onshore by developing Browse using FLNG.
The Australian reported yesterday that Mr Barnett was aiming to pressure Browse partners Woodside, Shell, BHP Billiton, BP, Mitsubishi and Mitsui to process the gas at James Price Point.
Shell's preference for FLNG could end the environmental controversy over the use of James Price Point, 60km north of the tourist town of Broome. Mr Barnett and his advisers have told senior executives in the oil and gas industry that the Premier would do all he could to ensure Shell was unable to use its expanded equity stake in Browse to process the gas offshore.
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Like fracced gas this could worry Woodside.
The United States will overtake Saudi Arabia as the world’s leading oil producer by about 2017 and will become a net oil exporter by 2030, according to a new report released on Monday by the International Energy Agency.
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India relies on coal for 55 percent of its electrical power and struggles to keep enough on hand.
Coal remains a critical component of the world’s energy supply, despite its bad image. In China, demand for coal in 2010 resulted in a traffic jam 120 kilometers, or 75 miles, long caused by more than 10,000 trucks carrying supplies from Inner Mongolia. India is increasing coal imports.
So is Europe, as it takes advantage of lower coal prices in the United States. Higher-priced natural gas on the Continent is creating demand for more coal imports from the United States, where coal is taking a drubbing from less costly natural gas.
Dirty, fickle and dangerous, coal may seem an odd contender in a world where promising renewable energy sources like solar, wind and hydroelectric power are attracting attention. Anathema to environmentalists because it creates so much pollution, coal still has the undeniable advantages of being widely available and easy to ship and burn.
The biggest attraction, however, is low cost. By many estimates, including that of Li Junfeng, longtime director general of the National Development and Reform Commission of China, burning coal still costs about one-third as much as using renewable energy like wind or solar.
There is a lot more to this FLNG stoush than meets the eye.Barnett has described Shell's plan to FLNG Browse,instead of the JPP option,as "a dangerous precedent."Why?
ReplyDeleteI believe the answer goes a bit further than first imagined.
OK some simple sums,which may be a bit off,but any way.$60 - $70 billion for 15 mtpa = $4-$5 billion per 1 mtpa.
3 FLNG @ 5 mtpa at say $10 billion each = $2 billion per 1 mtpa.
1/2 the price or less.
So on with the story:
Thats Browse done.Now the problem with Pluto.
Woodside have said they may have to build more billion dollar storage tanks depending on the heat value of any other gas they have to source.They have said train 2 may have to be a "baby" at about 2 - 3 mtpa.
So,and haven't read this anywhere else yet,why not build train 2 at sea over the field?One barge at 5 mtpa gives them trains 2 and 3.1 or 2 LNG ships converted to FLNG gives them 2 - 4 mtpa.
Thats Pluto fixed for 2 extra trains at $10 billion or less.For a cost of about $2 billion per 1 mtpa.
Now Gorgon,the JVP are arguing over the timing for train 4,oh and that pesky deal about having to sequester x amount of carbon back into the old wells.
Why not build train 4 at sea parked over the gas field,it is now easy for them to return any unwanted pollutants directly into the old wells.Space on Barrow island is getting scarce,seen the Google Earth lately,mind boggling.
Thats trains 4 - 5 and onward for Gorgon.
Wheatstone same.
And on and on it goes to all the others.
A very dangerous precedent indeed - for big spender Barnett that is.
With big changes like this should come new laws.The States at the moment do not get any benefits from FLNG in Commonwealth waters.This new technology demands change.
It will be WA ports and airfields that will service these new age plants,so come on pollies lets get with it and get some new agreements/laws in place for this FLNG.
That is a very interesting map.Eastern states crying out for gas,the Canning Basin has untold,draw an arc from Canning centre to Karratha and around - you are other side of Alice Springs.Potential there for a national pipeline network.
ReplyDeleteShame we are in the mess we are in with the climate and dirty extraction methods,nice plan otherwise.