WoodMac: NWS looking at 7 mtpa spare capacity by 2027
The North West Shelf liquefied natural gas project could have 7 mtpa of capacity available by 2027, 40 per cent of its nominal capacity.

Wood Mackenzie noted decisions have to be made soon in order procure backfill resources for the project.
The Woodside-operated five-train NWS facility has been producing LNG since 1989. Next year production capacity becomes available for the first time.
Wood Mackenzie senior analyst Daniel Toleman said, “Decisions on how to fill this gap need to be made now, not only because time is running out, but also because the joint venture is breaking-up. Chevron is running a process to sell out of the NWS, and we see other majors likely to follow.
“We see two windows of opportunity for backfill: one for smaller projects with short lead times, and the second for larger-scale resources that can extend the life of the NWS through to 2050.”
Good progress has been made on near-term backfill small-scale projects.
WoodMac believes the Pluto and Waitsia projects will add incremental supply into the NWS from 2022. However, these projects are only short-term solutions.
In the longer term, large-scale developments are needed. The Scarborough and Browse developments, both operated by Woodside, are the most likely backfill options due to their size. Other possible candidates, such as Clio-Acme, or excess gas from Greater Gorgon field development, now look unlikely.
However, neither the Scarborough nor Browse developments are straight-forward to deliver. The former is currently slated to supply a new second train at the Pluto plant, while the latter is a remote, complex, carbon-intensive and high-capex greenfield mega-project. As such, it faces a myriad of challenges in current market conditions.
Toleman said, “Challenges aside, there are compelling reasons for keeping NWS full. Once third-party gas flows through the plant, partners will receive a tariff for liquefaction. The government will receive additional tax revenue, the Dampier to Bunbury pipeline operator receives more revenue and there will be more domestic gas supply for the local market.
“Upstream participants can also monetise undeveloped resources and gain access to potentially higher LNG prices on a low capital outlay.”
List of related news articles
-
Posted: about 1 month ago
WoodMac: Australia to see $11 bln worth of FIDs in 2021
Australian operators are expected to sanction some $11 billion worth of gas projects in 2021, follow...
Posted: about 1 month ago -
Posted: about 1 month ago
WoodMac: 2-degree world to strand 12 trillion cbm of new gas
Over three quarters or 77 per cent of new LNG supply are at risk under a 2-degree scenario, accordin...
Posted: about 1 month ago -
- long read
Posted: 12 days agoO&G industry can deliver net-zero promises, with tweaks
Although the UK’s offshore oil and gas industry has committed to cutting operational emissions in ha...
Posted: 12 days ago -
Posted: 26 days ago
NWS partners execute third-party gas deals
The Woodside-led North West Shelf (NWS) project has executed fully-termed gas processing agreements ...
Posted: 26 days ago