WA may lose $12bn LNG project: Barnett

Premier-elect Colin Barnett said he is pessimistic over the state's chances of hosting Inpex Ltd's $12 billion liquefied natural gas project following a meeting with representatives this morning.

Mr Barnett told ABC radio that he was not overly confident that the Japanese company will select the Maret Islands over Darwin Habour after a meeting at Parliament House.

Inpex has already started a second drilling campaign at Darwin Habour to determine whether the site is suitable.

"I didn't leave that meeting with any sense of optimism, I leave it with a sense of pessimism," Mr Barnett was reported as saying.

"The only chance that remains is the fact that this project is proposed to be done in a sub-optimal way."

The company is due to announce its decision next Friday.