Woodside’s Browse LNG Project Cost Rises to $35 Billion Amid Delays

SEATTLE (Oil Monster): Woodside Energy’s long-delayed Browse LNG project is now expected to cost A$48.7 billion ($35.2 billion), significantly higher than the A$27.3 billion estimate released in 2019, according to a new economic assessment commissioned by the company.

The Browse liquefied natural gas project, considered Australia’s largest untapped gas resource, was first submitted for regulatory approval in 2018. Costs have risen following the addition of a major carbon capture and storage component in 2023, as well as delays linked to environmental approvals and negotiations over processing arrangements.

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A report prepared by Deloitte said the project would become one of Australia’s largest capital investments, supporting more than 3,000 full-time jobs and generating A$56.2 billion in tax revenue.

Woodside plans to use offshore Browse gas fields to supply the ageing North West Shelf LNG plant, which secured a 40-year life extension through 2070. The CCS system would inject up to 4 million metric tons of carbon dioxide annually back into reservoirs, reducing direct emissions by 47%.

Environmental groups continue to oppose the development, citing risks to Scott Reef and its endangered marine species. Government approval is expected as early as next month.