Woodside Petroleum Ltd., Perth, has exited the Sempla Energy-led Port Arthur LNG gas export development project in Texas.
Woodside joined the project 3 years ago but is now citing lower-than-expected returns than would justify the investment as the reason for walking away.
Woodside Chief Executive Officer Peter Coleman said the Port Arthur project fell below the company’s expected investment returns and Woodside needed to place its money elsewhere.
The export facility was expected to come on stream in 2023.
Coleman said Woodside’s focus remained on unlocking the huge resources offshore Western Australia, which includes the proposed $20.5-billion Browse LNG project. Coleman added that Browse has been given a new lease on life as partners in the existing North West Shelf Gas Project LNG terminal on the Burrup Peninsula have recently agreed terms for processing third-party gas.
Woodside expects a preliminary tolling agreement between the NWS participants and the Browse JV during this year’s third quarter. Woodside is operator of both projects.
The Browse project proposes that gas from fields in the Browse basin offshore Broome would be piped for 1,000 km south down to the Burrup plant.