16/04/2009 - 14:31

Woodside backs Kimberley for Browse

16/04/2009 - 14:31

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Woodside Petroleum announced today that the Kimberley LNG hub was its preferred site for developing its Browse Basin gas fields, even though its joint venture partners have not yet made a decision.

Woodside Petroleum announced today that the Kimberley LNG hub was its preferred site for developing its Browse Basin gas fields, even though its joint venture partners have not yet made a decision.

Previously, Woodside has been evaluating two development options: piping the gas to a new liquefied natural gas (LNG) plant on the Kimberley coast, or piping it to an existing LNG plant at Karratha.

Its announcement followed the completion of an in-principle agreement between the state government and the Kimberley Land Council over the use of James Price Point north of Broome as the site for an LNG processing hub.

The government envisages that Woodside and other LNG project proponents can use a single location for developing LNG processing plants.

Woodside is the operator and owns about 50 per cent of the Browse Basin gas fields. Its joint venture partners are BHP Billiton, BP, Chevron and Shell.

The same companies are also majority owners of the North West Shelf venture, which has developed the existing LNG plant on the Burrup Peninsula near Karratha.

 

 

Woodside's statement is pasted below:

 

HEADS OF AGREEMENT REACHED FOR KIMBERLEY LNG PRECINCT


Woodside has verbally agreed the terms of a Heads of Agreement between the State of Western Australia and the Kimberley Land Council on behalf of Traditional Owners, related to the establishment of a LNG Precinct in the James Price Point area, north of Broome.

The Heads of Agreement outlines commitments for all the parties involved, and significant financial and other benefits for Indigenous people in the Kimberley.

The Heads of Agreement is subject to a number of conditions, and will require the conversion of the Heads of Agreement to an Indigenous Land Use Agreement to be negotiated and entered into later in 2009. The Indigenous Land Use Agreement will enable the State to secure land for an LNG Precinct at James Price Point.

Woodside expects to execute the Heads of Agreement in the coming days, and will do so on the basis that the Kimberley LNG Precinct is its preferred site for the processing of LNG from the Browse Basin gas fields.

The other Browse Joint Venturers are not parties to the Heads of Agreement. The Browse Joint Venture is considering locations for processing Browse gas at the Kimberley LNG Precinct or at Woodside operated facilities in Karratha and has not yet made a decision on the location.

 

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