After a delayed process, Woodside Petroleum Ltd [ASX:WPL]’s gas project off Western Australia has managed to gain support amongst partners with North West Shelf Liquefied Natural Gas.
They both agreed on a tariff which will come into action by the end of June, focusing on handling Browse gas.
With almost 4000 people employed fulltime, Woodside has acted as an independent oil and gas company since 1954.
Today Woodside’s share price grew by 1.11%
How Woodside managed to revive its gas project after the delay
The gas project has always been a strong factor in terms for growth.
However, Woodside has been in a stagnant position as they have remained on the drawing board for years.
After a while they agreed on a plan to develop a giant gas field for the purpose of feeding the North West Shelf plant, which is Australia’s biggest LNG plant.
Reuters.com reported that Woodside CEO Peter Coleman stated:
‘We’ve picked up momentum over the last couple of months around Browse and some of it is now a realization, in particular on behalf of the North West Shelf partners, that Browse needs to be the anchor tenant for the North West Shelf over the next 25 years.’
Once the tariff is in place, Woodside, alongside its partners, will be in a much stronger position to be able to move forward with plans to develop a field.
Their current target is to make a definitive investment decision by 2021, but it could come to an earlier date if all goes well.
Coleman believes the opportunity will allow Woodside to better meet the market.
Woodside is also focused on pushing forward an oil project located near Senegal.
Their overall oil output has risen since March last year, and they plan to go forth with their venture alongside business partners Cairn Energy and FAR Ltd.
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