Analysts predict that Australian company Woodside Petroleum?s plan to develop a second liquefied natural gas project in Western Australia may fail because of high costs and environmental concerns.
Woodside, the second-largest oil and gas producer in Australia, said on November 17 it will launch the development of three fields in the Browse Basin amid the likely stalling of its $3.7 billion Sunrise gas project in the Timor Sea.
The Browse venture involves 7 million metric tons a year of production, which may start up in 2011, said David Maxwell, director of the gas and commercial department.
Some consultants say that it's difficult to see that a Browse Basin project is going to be highly competitive, because it wouldn't come in any cheaper than Greater Sunrise, in fact it would probably be a lot more expensive.
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Woodside Petroleum LNG Plans To Ruin»
Woodside Petroleum's plan to develop a second LNG project in Western Australia may fail
