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I've failed on gas hub: Barnett

Ive failed on gas hub: Barnett
Apology: Colin Barnett. Picture: Mogens Johansen/The West Australian

Colin Barnett last night accused Woodside Petroleum of letting WA down as he apologised to State Parliament for the loss of the onshore Browse LNG project with the emotional declaration: "I've failed."

"I've failed to get the project - LNG - to James Price Point," the Premier said. "I've failed to create the thousands of jobs for West Australians. I've failed to create the opportunity for WA industry.

"And most important I have failed the Aboriginal people.

"They placed their trust in me, and I have let them down."

The extraordinary comments came after Woodside formally ended more than a year of speculation by confirming it would develop the massive gas fields off the Kimberley using floating LNG technology, rather than Mr Barnett's preference for a massive onshore processing plant at James Price Point, north of Broome.

Woodside, which is the biggest shareholder in and the operator of the five-member Browse consortium, said FLNG was "the best option" after assessing alternatives including building a pipeline from the offshore Browse Basin to the North West Shelf gas plant near Karratha, and a smaller gas processing hub at James Price Point.

Woodside and its partners, which include Royal Dutch Shell and PetroChina, are expected to target 2015 as the start of construction for their FLNG plans, with most of the work expected to be done in Asian steelyards.

Mr Barnett savaged the Woodside decision last night amid a testy exchange with Opposition Leader Mark McGowan in a Budget estimates hearing.

"Look, I am a realist. I've failed. I've failed," Mr Barnett said.

"I am also disappointed in Woodside. I have worked with Woodside over the years and I think they have let down this State in the way they have gone about some of their decisions recently.

"There would be no company in WA history that has had the degree of support from successive governments as Woodside has.

"I think they're a great company and I think everyone in WA including myself is proud of what they have achieved.

"But I don't think they've covered themselves in glory over the past several months."

Mr Barnett said he hoped the consortium would agree "at a minimum" to develop a supply base at James Price Point to service an FLNG project, which could become a forerunner to future onshore processing.

Mr McGowan said it would have been "a better outcome for the State" if Mr Barnett had allowed the partners to pipe gas to Karratha instead of insisting on James Price Point, sparking a passionate reaction from the Premier.

"I've failed," he said. "Ridicule me if you wish to. Laugh me out of public office if you wish to. I did everything possible."