Gray paves way for Browse FLNG

Federal Resources Minister Gary Gray has approved an application by the Woodside Browse consortium to formally drop James Price Point as the sole development option for the massive gas field off the Kimberley coast, paving the way for another floating LNG operation.

Mr Gray this afternoon informed the Woodside Petroleum-led consortium, which includes FLNG leader Royal Dutch Shell, he had agreed to drop conditions in the retention leases covering five of the seven Browse gas field permits that stipulated that the partners had to work on an onshore processing plant at James Price Point, north of Broome.

The partners are now expected to sit down and formalise their view that the Browse fields are best developed as a FLNG operation, before discussing the appropriate lease expenditure commitments and work programs with the industry's regulator, NOPTA.

Mr Gray had long been supportive of the Woodside consortium's plans to develop the Browse fields in a floating manner because he agreed with its assessment that an onshore processing plant was economically unviable.

But it remains unclear if Colin Barnett, who as Premier has a say over how gas in the other two of seven Browse leases is developed, will jump in behind Mr Gray.

Mr Barnett has been vocal about his opposition to FLNG because he says it will rob WA of much-needed construction jobs and indigenous groups of income.

But Mr Gray today said allowing the Browse consortium to pursue a FLNG development was the only option to ensure one of Australia's biggest gas fields was commercialised before the end of this decade, when competing LNG developments in East Africa, Russia, China and Canada are expected to erode Australia's competitive advantage.