Barnett insists on Browse
Colin Barnett has paved the way for WA's first re-gasification plant, off the coast of Perth or the South West, to satisfy the State's demands for the Woodside Petroleum-led Browse consortium to supply the domestic gas market.
The Premier said yesterday he expected gas from the consortium's three fields - Torosa, Brecknock and Calliance - to make its way into the domestic market despite having already accepted the Woodside Browse project would be developed as an offshore, floating LNG venture.
There had been an expectation Mr Barnett, who remains unhappy at the FLNG option because of his preference for gas to be processed at James Price Point, north of Broome, would be amenable to a gas swap deal.
That way Woodside would be able to offer up gas volumes from other land-based LNG projects such as the North West Shelf or Pluto to satisfy the Premier's Browse domestic demands and not be forced into building a pipeline or constructing a re-gasification terminal, which comes with a $300 million-plus price tag.
Responding yesterday to a question on whether a gas swap was acceptable, the Premier told a live chat on thewest.com.au: "We will insist on molecules from the Browse project.
"A pipeline or a ship transport are the two options for delivering those molecules."
Mr Barnett's insistence is a step-up from answers he gave during a parliamentary estimates committee hearing last month when he said he expected Woodside to satisfy the venture's domestic obligations with gas from "the Browse fields but if the proponents bring up some alternative, we will consider it on its merits".
Mr Barnett said in the case of a "ship transport" solution, it would deliver the gas "into the southern part of the State.
"We would either have an onshore re-gasification plant or we may have a floating re-gasification plant," he added.
Domestic gas and a supply base are the key sticking points that Woodside needs to resolve before receiving Mr Barnett's support.
Woodside wants to expand Broome's port but that may not prove enough for Mr Barnett. Woodside's domestic gas plans also run foul of the Premier.
Woodside yesterday remained tight-lipped. "The Browse (partners) are investigating the feasibility of making gas available for the domestic market and are committed to working with the State to deliver a successful and timely FLNG development," it said.
