Woodside seeks liquefaction site off W. Australia

Rick Wilkinson
OGJ Correspondent

ADELAIDE, Apr. 20 -- Woodside Petroleum is considering building its $10 billion Browse basin LNG liquefaction plant on the Scott coral reef some 420 km from Broome off Kimberley, Western Australia. Woodside is project operator and owns 50%.

Woodside's development director Peter Moore told the Australian Petroleum Production and Exploration (APPEA) Conference in Adelaide this week it is considering a lagoon-based plant on the reef, which is midway between Australia and Indonesia.

Although not providing plant cost estimates, Moore said this offshore facility should cost several billion dollars less than an onshore plant.

The company also is considering six offshore sites between Broome and the Buccaneer Archipelago.

The three fields that would serve as feedstock for LNG production—Torosa, Brecknock, and Calliance— have reserves estimated at 20 tcf. First production is slated for 2013-14, which will require the Woodside group to select a plant site by yearend.

Scott Reef would pose a number of environmental problems, as would a land-based plant, but the offshore location would obviate the need for a pipeline to shore.

At the conference World Wildlife Fund (WWF) CEO Greg Bourne opposed Woodside's plans, saying coral reef systems such as Scott Reef represent an important and increasingly threatened marine ecosystem type.

"To construct a facility there would attract global attention; generate global outrage, and become Australia's 'Anwar,' to its shame, regardless of the scale of development," he said.

"We (at WWF) want to see Australian oil and gas operators known for their legacy of sensible development and environmental leadership and not be known as the first to dismantle a coral ecosystem like Scott Reef in the name of purely economic progress."

Bourne, a former CEO of BP Australia, suggested that state and federal governments and industry cooperate to establish a single production hub in the Kimberley region for all the potential Browse basin LNG projects that have been considered in the last few years rather than having each company scatter plants along the pristine Kimberley coast.

He said WWF is by no means antidevelopment or antigas development, but emphasized that companies should not be single-minded in their drive to push through the cheapest economic option. He said there must be a balance among economic, social, and environmental considerations.

Related Articles

Pennsylvania governor asks Obama for stronger crude-by-rail rules

03/02/2015 Noting that 60-70 trains/week carry Bakken crude oil across Pennsylvania to the Philadelphia area or other East Coast refineries, Gov. Tom Wolf (D)...

Gassco takes over as operator of Knarr pipeline

03/02/2015 Gassco has taken over as operator of the Knarr pipeline, which will transport rich gas to the Shell-Esso Gas and Liquids (Segal) system and St. Fer...

IHS: Crude transported by Keystone XL would be consumed in US

03/02/2015 Most, if not all, of the crude oil that would be transported via the proposed Keystone XL pipeline to the US Gulf Coast would not be exported, and ...

Obama vetoes bill approving Keystone XL crude oil pipeline

03/02/2015 US President Barack Obama vetoed S. 1, authorizing construction of the proposed Keystone XL crude oil pipeline, saying that Congress had attempted ...

BP: Global energy demand to jump 37% by 2035

03/02/2015 Global demand for energy is expected to rise by 37% from 2013 to 2035, or by an average of 1.4%/year, due in large part to ongoing economic expansi...

Magellan, PAA form Saddlehorn crude pipeline joint venture

02/27/2015 Magellan Midstream Partners LP and Plains All American Pipeline LP have formed Saddlehorn Pipeline Co., a 50-50 limited liability joint venture, to...

Recent CSIS report outlines main US oil infrastructure challenges

02/27/2015 The US crude oil renaissance has created strong demand for expanded US transportation systems, resulting in five primarily challenges, a recent Cen...

PetroChina mulling sale of its stake in Arrow CSG

02/27/2015

PetroChina is reportedly considering selling its half of Arrow Energy’s Queensland coal seam gas (CSG) resources.

Petroleum detected in fish tested after Yellowstone River pipeline spill

02/26/2015 Detectable levels of petroleum were found in tests of fish pulled from the Yellowstone River downstream from a broken petroleum pipeline near Glend...
White Papers

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...
Available Webcasts


Prevention, Detection and Mitigation of pipeline leaks in the modern world

When Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST



On Demand

Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected