SBS On Demand | TV and Online Video - James Price Point project 'dead and buried'
An indigenous elder and The Wilderness Society have succeeded in delivering an embarrassing legal blow, to the W.A. government's plans for a multi-billion dollar gas hub, at James Price Point in the Kimberley. The state's chief justice has backed their case, ruling environmental approval for the project was unlawful. The scheme was already in limbo and the Wilderness Society now says it's dead and buried.
Photo Damian Kelly
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A MAJOR national bank has been forced to remove more than 100 misleading out of order signs from its ATMs after being targeted by anti-coal activists.
A MAJOR national bank has been forced to remove more than 100 misleading out of order signs from its ATMs after being targeted by anti-coal activists.
A score of ANZ Banking Group machines sprawled across six capital cities were plastered with "out of order" signs on Sunday after campaigners launched their latest bid to draw attention to the bank's funding of the coal industry.
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I've failed on gas hub: Barnett
ReplyDeleteColin Barnett last night accused Woodside Petroleum of letting WA down as he apologised to State Parliament for the loss of the onshore Browse LNG project with the emotional declaration: "I've failed."
"I've failed to get the project - LNG - to James Price Point," the Premier said. "I've failed to create the thousands of jobs for West Australians. I've failed to create the opportunity for WA industry.
"And most important I have failed the Aboriginal people.
"They placed their trust in me, and I have let them down."
The extraordinary comments came after Woodside formally ended more than a year of speculation by confirming it would develop the massive gas fields off the Kimberley using floating LNG technology, rather than Mr Barnett's preference for a massive onshore processing plant at James Price Point, north of Broome.
Woodside, which is the biggest shareholder in and the operator of the five-member Browse consortium, said FLNG was "the best option" after assessing alternatives including building a pipeline from the offshore Browse Basin to the North West Shelf gas plant near Karratha, and a smaller gas processing hub at James Price Point.
Woodside and its partners, which include Royal Dutch Shell and PetroChina, are expected to target 2015 as the start of construction for their FLNG plans, with most of the work expected to be done in Asian steelyards.
Mr Barnett savaged the Woodside decision last night amid a testy exchange with Opposition Leader Mark McGowan in a Budget estimates hearing.
"Look, I am a realist. I've failed. I've failed," Mr Barnett said.
"I am also disappointed in Woodside. I have worked with Woodside over the years and I think they have let down this State in the way they have gone about some of their decisions recently.
"There would be no company in WA history that has had the degree of support from successive governments as Woodside has.
"I think they're a great company and I think everyone in WA including myself is proud of what they have achieved.
"But I don't think they've covered themselves in glory over the past several months."
Mr Barnett said he hoped the consortium would agree "at a minimum" to develop a supply base at James Price Point to service an FLNG project, which could become a forerunner to future onshore processing.
Mr McGowan said it would have been "a better outcome for the State" if Mr Barnett had allowed the partners to pipe gas to Karratha instead of insisting on James Price Point, sparking a passionate reaction from the Premier.
"I've failed," he said. "Ridicule me if you wish to. Laugh me out of public office if you wish to. I did everything possible."
Queries on Woodside's swift Browse decision
ReplyDeleteby: Paul Garvey
From: The Australian
August 21, 2013 12:00AM
WOODSIDE Petroleum is set to face questions about its lack of medium-term growth options today despite its decision to fast-track development of a floating liquefied natural gas platform at its Browse project off northern Western Australia.
Woodside yesterday confirmed it would pursue the development of its huge but remote Browse gasfields via the revolutionary FLNG technology of its joint venture partner Royal Dutch Shell.
Woodside in April announced it had scrapped plans for a $42 billion LNG plant at James Price Point north of Broome, citing high Australian costs.
While the FLNG commitment was expected, the pace with which Woodside has moved to commit to FLNG - discarding other options that included piping the Browse gas over 1000km to existing LNG facilities on the Pilbara coast or a smaller onshore LNG plant at James Price Point - shows the urgency of the company to push for a near-term development at the project.
Yesterday's commitment was made just over four months since the James Price Point plan was scrapped. In contrast, it took Woodside and its partners from 2005 until late 2009 to move through the process and settle on James Price Point as a preferred development option for Browse.
Woodside chief executive Peter Coleman is expected to expand on the details of the proposal when the company hands down its half-year results today.
In a statement yesterday, Mr Coleman said he was pleased with the pace at which Woodside had been able to settle on FLNG as the best development option.
"Through this review (of alternative development concepts for Browse), a compelling case has emerged for floating LNG as the best option for early commercialisation," he said.
While federal Resources Minister Gary Gray has previously flagged his support for an FLNG facility at Browse, Woodside and its partners are still working to win the support of the WA government and Premier Colin Barnett.
Mr Barnett has been a fierce critic of FLNG technology at Browse, saying the state would miss out on jobs and investment.
The commitment comes as analysts continue to question the growth prospects of Woodside.
The company has no major growth projects slated for development in the next three years, and has committed to a higher dividend in the meantime.
A proposed acquisition of a stake in the huge but undeveloped Leviathan gasfield off Israel was shaping as the company's next key project, but that purchase has stalled.
RBC Capital Markets analyst Andrew Williams said that in a best case scenario Woodside and its partners could have Browse FLNG up and running by 2017.
"We look at the production outlook for 2014, 2015, 2016 and there's nothing (growth-related) in there. That's the problem," Mr Williams said.
FLNG technology involves building traditional LNG processing facilities on board what will be the largest floating vessels ever built. The barges can be positioned directly over remote gasfields.
Shell is developing what will probably be the world's first FLNG plant at Prelude, elsewhere in the Browse Basin, with Deutsche Bank analysts expecting the 3.6 million-tonne-per-annum facility to cost $US12bn ($13bn) to develop.
Woodside is expected to announce an underlying net profit for the half year of about $US898 million and a dividend of 83.5c per share, according to consensus analyst estimates.
Premier Colin Barnett admits failing WA on Woodside's plans for James Price Point project
ReplyDeletePremier Colin Barnett has conceded he has failed the people of Western Australia following Woodside's decision to push ahead with floating LNG technology to process gas from the Browse Basin.
Mr Barnett has been staunchly opposed to the project moving offshore but has now told a budget estimates hearing, he accepts it will.
"I'm a realist, I've failed, I've failed to get the project LNG onto James Price Point," he said.
"I've failed to create the thousands of jobs for West Australians, I've failed to create the opportunity for West Australian industry.
"And, most important, I have failed the Aboriginal people. They placed their trust in me and I've let them down."
Opposition Leader Mark McGowan says the admission is a sign of surrender.
"This battle is not over yet, I think he should keep fighting," he said.
Mr McGowan says the Premier should continue to push his case with both Woodside and the joint venture partners.
Questioned about his previous commitment to the project, Mr Barnett hit back.
"Ridicule me if you wish to, laugh me out of public office if you wish to but I did everything possible," he said.
"I sat down on the beach with the Aboriginal people, I negotiated with Aboriginal people, I reached agreement with them when you said it could never be done."
Wayne Bergmann represented traditional owners in negotiations to build the gas hub at James Price Point.
The traditional owners were promised a $1.5 billion package if the project went ahead.
When that looked unlikely, the State Government pushed ahead with negotiations to create the gas hub for other proponents and offered a $30 million deal in exchange for the land should it be compulsorily acquired.
He says the Government should honour its promises.
"I feel for the Premier for his expression of disappointment, but this is not a time to sit on your hands," he said.
"The Premier has led Aboriginal people down a process where we had very intense negotiation and there was a deal done, and the Premier needs to be able to honour that deal."
Mr Bergmann says the biggest social issue facing Aboriginal communities is the lack of participation in business.
"James Price Point represented one of the single biggest opportunities to increase Aboriginal people's participation in the wage economy," he said.
RIGZONE
ReplyDeleteWoodside Recommends FLNG Concept for Browse Development
Australia-based Woodside Petroleum Ltd. recommended Tuesday that the Browse Joint Venture participants use floating liquefied natural gas (FLNG) technology as the development concept to commercialize the three Browse gas fields off Western Australia.
The concept, which involve using Shell’s FLNG technology and Woodside’s offshore development expertise for the Browse LNG Development, requires the approval of the Browse Joint Venture participants before progressing through to the Basis of Design phase.
Woodside said the choice of an FLNG development follows an evaluation of alternative concepts for the Browse project after the announcement in April not to proceed with the onshore development at James Price Point in the north-west of Western Australia. Other development concepts considered by Woodside included a pipeline to existing facilities in the Pilbara region and a modified option in the Kimberley.
“Through this review, a compelling case has emerged for floating LNG as the best option for early commercialization of the world-class Browse resource,” Woodside CEO Peter Coleman said in a press release.
The Browse LNG project's three gas and condensate fields - Brecknock, Calliance and Torosa - are estimated to hold combined contingent volumes of 15.9 trillion cubic feet of dry gas and 436 million barrels of condensate.
Partners in the Browse Joint Venture are operator Woodside, Shell Development (Australia) Pty Ltd., BP Developments Australia Pty Ltd., Japan Australia LNG (MIMI Browse) Pty Ltd. and PetroChina International Investment (Australia) Pty Ltd.
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LNG WORLD NEWS
Woodside Approves FLNG for Browse, Australia
Woodside has resolved to recommend the Browse Joint Venture participants use floating LNG (FLNG) technology as the development concept to commercialise the three Browse gas fields.
This concept would involve using Shell’s FLNG technology and Woodside’s offshore development expertise for the Browse LNG Development.
The selection of FLNG as the development concept requires the approval of the Browse Joint Venture participants before progressing through to the Basis of Design phase.
Woodside’s decision follows the evaluation of alternative development concepts for Browse after the announcement in April this year not to proceed with the onshore development at James Price Point.
Other development concepts considered included a pipeline to existing facilities in the Pilbara and a modified option in the Kimberley.
Woodside CEO Peter Coleman said it was pleasing that Woodside had been able to complete the evaluation of alternative development concepts quickly.
“Through this review, a compelling case has emerged for floating LNG as the best option for early commercialisation of the world-class Browse resource,” Mr Coleman said.