Australia: Energy Minister Confident Browse Project Will Be Developed

Energy Minister Confident Browse Project Will Be Developed

The Minister for Resources and Energy, Gary Gray, commented on the commercial decision by Woodside to not proceed with James Price Point as the location for their development of the Browse LNG project gas resources.

The Browse project has the potential to benefit State and Commonwealth revenues, the Kimberley region and the Australian economy, as well as add significant capacity to Australia’s LNG export industry” Mr Gray said.

“Ultimately the decision on the development concept is a commercial one for the Joint Venture, provided it can meet the requisite regulatory requirements.”

Mr Gray said he remained confident that the Browse gas resources would be developed.

“The gas and condensate fields in the Browse Basin were discovered in the early 1970s and the road to developing them has been a long one.”

He expected the National Offshore Petroleum Titles Administrator, in the Department of Resources, Energy and Tourism, to now provide advice to him and the WA Minister for Mines and Petroleum on the implications of Woodside’s announcement.

“The Joint Venture’s five retention leases are currently in Year 4 of the five-year term and are due to expire in December 2014. The Joint Venture was required by conditions on the retention leases to be in a position to take a final investment decision on the James Price Point development concept by June 25, 2013,” Mr Gray said.

“It is not appropriate and would be prejudicial for me to speculate on the outcome of any consideration by myself and the WA Minister for Mines and Petroleum of any future applications regarding the retention leases”.

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LNG World News Staff, April 12, 2013; Image: garygray.com.au