Woodside confident Browse will go ahead

Woodside boss Peter Coleman is confident the $45 billion Browse LNG gas project will go ahead. Source: AAP

WOODSIDE boss Peter Coleman is confident the $45 billion Browse LNG gas project will go ahead, despite the energy giant scrapping plans for a controversial onshore processing plant in Western Australia.

Woodside has scratched plans to build a processing plant at James Price Point in West Australia's north, saying it would not deliver the returns the company needed.

Woodside will now begin talks with its joint venture partners, which include Shell Australia, about alternatives.

Possibilities include using floating technologies to process the gas or building a pipeline to existing LNG facilities in WA's Pilbara region.

Another alternative is building a smaller onshore plant at proposed Browse LNG precinct near James Price Point.

Mr Coleman said the decision to dump the plan for James Price Point was a tough one, saying the project was subject to cost pressures.

"We do believe that Browse will get developed," he told reporters.

He said Woodside had been looking at other options to a processing plant at James Price Point, but said they were not nearly as mature as the original plan for the facility there.

However some of the alternatives that would be considered did have the potential for the early development of Browse.

"We've already come out and said things like floating technology, for example, is a technology that Woodside supports ... whether that's appropriate for a Browse development will need to be determined by the joint venture over time," Mr Coleman said.

He said Woodside did not have an alternative preference at this stage and needed to talk to its joint venture partners in the next few weeks to map out a plan.

Shell's Australian boss Ann Pickard reiterated that it believed its floating technology would be the fastest, most economic and best technical solution for processing gas from the Browse project.

"Floating LNG can bring significant long term, sustainable jobs to Western Australia, Australia, and the Kimberley, as well as providing employment and business opportunities for Kimberley indigenous people," Ms Pickard said in a statement.

Ms Pickard said Shell would work closely with the Browse joint venture and government to keep the Browse project on track.

But WA Premier Colin Barnett said it would be a tragedy and a missed opportunity if Browse gas project didn't wind up onshore at James Price Point.

Mr Barnett has long been adamant the gas should be processed onshore as this would ensure local jobs.

But he softened his tone on Friday, saying an offshore project would still bring benefits to WA.

"If the project goes ahead offshore ... it would still bring some benefits to WA," he said.

"It would be a tragedy and a missed opportunity if that gas did not come onshore."

Green groups and shareholders have applauded Woodside's decision to dump plans for the costly onshore liquefied natural gas plant.

Woodside shares were 90 cents, or 2.5 per cent, higher at $36.18 at 1135 AEST.

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