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  1. 2,669 Posts.
    It's make or break for LNG as global pressures mount on Woodside and Shell (FROM THE AUSTRALIAN)

    This was supposed to be the year when, more than four decades since a drill rig first penetrated the gas-rich reservoirs that make up the enormous 15 trillion cubic feet gas resource, the Browse project finally moved into development.
    The plans for a massive onshore LNG plant at James Price Point, north of Broome in WA's comparatively undeveloped Kimberley region, have attracted plenty of protests from environmentalists and have opened up divisions between local indigenous groups. . .
    But it is the rapidly changing dynamics in the LNG market, coupled with ever-rising cost inflation in the Australian resources industry, that are shaping as the biggest challenges not just to Browse but to all other LNG projects either under construction or planned for development in Australia.
    Today, Browse finds itself caught at the epicentre of a rapidly shifting global LNG market. As it stands, the unhealthy combination of soaring construction costs in Australia, the stubbornly strong Australian dollar, and a global LNG market battling to understand the full implications of the vast shale gas reserves being identified in North America could well conspire against the development of Browse.
    At present, most analysts see the development of Browse through a massive LNG plant at James Price Point as a long shot.
    If the various joint venture partners fail to agree to go ahead with the James Price Point plan, it could officially mark the point when new onshore LNG developments in Australia became uneconomic" (The Australian)
 
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