MELBOURNE, Aug 20 (Reuters) - Woodside Petroleum Ltd has recommended building a floating liquefied naturalgas plant to develop the Browse gas fields off WesternAustralia, in a speedy decision calling for the use of itspartner Royal Dutch Shell Plc's technology.
The project, which would be Woodside's biggest LNGdevelopment yet, has been long delayed as authorities initiallydemanded the company study a $45 billion plan to develop a plantat a controversial onshore site. That plan that was scrapped inApril as too expensive.
The company said at the time that it would take at least twoyears to sign off on an alternative plan. Tuesday's announcementgets the ball rolling sooner than expected, which could speed upa final sign-off on a new development plan.
Chief Executive Peter Coleman said that following a reviewof alternatives, including a pipeline to the North West ShelfLNG facilities and another onshore option, the company haddecided to recommend floating LNG to its partners.
"Through this review, a compelling case has emerged forfloating LNG as the best option for early commercialisation ofthe world-class Browse resource," Coleman said.
Woodside owns a 31 percent stake in Browse, alongside partners Shell, BP Plc, PetroChina, Mitsui &Co and Mitsubishi Corp.
The Western Australian government has strongly opposed afloating LNG plant, on the view that an offshore plant wouldcreate fewer jobs and reap much smaller benefits for the localeconomy.
But major oil and gas companies looking at investingbillions in LNG plant expansions in Australia have warned thatpotential projects have become uncompetitive due to soaringcosts compared to options in other regions, like East Africa.
