MACQ - sell down quadrant energy, page-2

and yesterday.....


WA Government signs $1 billion deal to receive domestic gas supplies from Browse floating LNG project

By Kathryn Diss
Updated yesterday at 9:17pmTue 23 Jun 2015, 9:17pm
Photo: Woodside decided to develop its Browse gas fields using offshore technology. (Courtesy:Shell Australia)

Map: WA
The WA Government has signed a deal with oil and gas giant Woodside to receive domestic gas supplies from the Browse floating LNG project off the Kimberley coast.
It is the first time the state's domestic gas policy has been applied to a floating LNG project.
It is expected to raise more than $1 billion in royalties over the life of the project.
Woodside announced in 2013 it would develop Browse offshore after it dumped plans to bring the gas onshore for production at James Price Point.
Under the new deal the joint venture has committed to reserve the equivalent of 15 per cent of gas produced from the Government's share of the Torosa gas field, which is one the project's three fields.
The state's domestic gas policy requires exporters of LNG to make available 15 per cent of their gas exports available for the WA domestic market, but it is only triggered when the gas fields are within state waters.
Originally all of the project's fields were thought to be within Commonwealth waters but a re-draw of boundaries found Torosa, which is the largest field, fell within state waters.
In addition, the joint venture has agreed to develop an integrated supply chain, which would provide port, marine, aviation, storage and transport services.
It would involve a primary operations base in Perth as well as locations in the North West.
Premier Colin Barnett said the proposed use of an offshore floating LNG vessel used to extract the gas had placed a question mark over whether the gas would come to WA.
He said the in-principle agreement resolved that issue.
"There will be gas supply, either from Browse or via some alternative gas field," he said.
The State Government unsuccessfully campaigned for gas from the Browse Basin to be brought ashore and processed at James Price Point in the Kimberley.
But Woodside decided to pursue the offshore option.
Since then, Mr Barnett has been pushing to ensure the floating LNG vessel is serviced from WA.
He said that too, would now happen.



most would be aware that there isn't a LNG receiving terminal in sunny W.A. .......

this strongly suggests that the Browse LNG project has to "do a deal" with an incumbent producer .......and do some sort of long-term gas swap ......to get their Browse F-LNG project over the line ......(assuming GSA's etc etc etc etc) .....

rgds
V_H