Woodside cancels plans for LNG processing plant at James Price Point
- PerthNow
- April 11, 2013
Woodside has decided not to go ahead with a LNG processing plant at James Price Point. Source: AFP
WA Premier Colin Barnett said this afternoon that he had not been informed of the decision.
Asked by Opposition leader Mark McGowan if he had been advised by Woodside that the project had been rejected by the consortium, Mr Barnett today told Parliament it was not for him to divulge market-sensitive information.
The Sunday Times revealed in January that the proposed LNG hub in the Kimberley was unlikely to proceed because of escalating costs that threatened its profitability.
The Woodside joint venture, which had been due to announce a decision before June, has decided against proceeding with the onshore hub at James Price Point, which has attracted fierce opposition from environmentalists and many locals.
The decision has torpedoed a $1.5 billion benefits package negotiated with native title claimants, the Goolarabooloo Jabirr Jabirr, although some compensation may be negotiated.
PerthNow understands the final decision not to proceed came after a meeting on Monday night.
Greens MP Robin Chapple called on the state government to rescind the Browse Land Agreement Act.
"If it doesn't, the sword of Damocles will hang over the Kimberley for the next 10 years,'' he said in a statement.
"It is a clear victory that Woodside and their partners have seen sense, but the state government continues to hold the Kimberley to ransom while this Act continues to operate.''
The project has been hotly debated in WA, with Mr Barnett arguing the LNG must be processed onshore to maximise benefits to WA and particularly local Aboriginals.
Broome is a town divided over the project - while there is support for it, some believe the LNG should be processed offshore, while others do not want it to go ahead at all.
Just yesterday, Royal Dutch Shell's Ann Pickard restated the organisation's preference for floating LNG - arguing it would put WA at the forefront of innovation in the industry.
Mr Barnett is bitterly opposed to the floating LNG option, saying WA would miss out on thousands of construction jobs and royalties.
Recently-appointed Federal Resources Minister Gary Gray has previously voiced his support for the floating technology.
Broome Chamber of Commerce executive officer Maryanne Peterson said several contractors had been told not to proceed with work, such as ground clearing.
"(Woodside) have decided not to proceed with some activities that they were going to undertake prior to FID (final investment decision)," she said.
"We don't know whether this work is just being postponed or whether they already had enough information collected to make a decision - we don't know what it really means."
A State Government spokeswoman said there was nothing to say on the matter and said questions should be directed to Woodside, who refused to comment today.
