Woodside confirms that the first train of Australian North West Shelf LNG plant (NWS LNG) will cease production in 2024.
Woodside confirms that the first train of Australian North West Shelf LNG plant (NWS LNG) will cease production in 2024, as the operator had projected that the facility will operate under its capacity “due to a combination of natural field decline and limited third-party gas processing demand.”
Global LNG Info's Analytics has predicted that NWS LNG will have to gradually take more trains out of service starting next year if Woodside can't secure adequate feedgas for the facility.
Discussions have been underway between NWS LNG venture and other gas resources owners for the processing of third-party gas in the LNG plant as it was on track to receive gas from Waitsia and Browse projects.
Australia's Beach Energy has recently admitted further delays at its Waitsia gas field stage 2 development, due to the collapse of the project’s original EPC contractor Clough and cost blowouts. The project had initially been expected to start sending gas to the NWS LNG plant this year but now the project aimed to start flowing gas from the middle of next year.
In addition, NWS LNG and Browse gas partners are negotiating on the key commercial terms in support of the Browse gas to NWS development concept. “Browse is a large backfill opportunity to fill long-term NWS ullage due to the quantity and the compatibility of the gas resource with the [NWS LNG venture’s Karratha Gas Plant] facilities.”
However, Woodside has reminded that complicated Browse project should settle some critical issues before its development could be started i.e. finding viable solution(s) to handle the field’s high CO2 content, getting local and federal environmental approvals and reaching commercial agreement with NWS LNG venture on a potential tolling deal which was anticipated to be challenging.
According to the
Global LNG Database®, the 16.3 MMT/Y NWS LNG venture’s shareholders are Woodside Energy (operator) 33.34%, Shell 16.67%, Japan Australia LNG (MIMI) 16.67%, BP 16.67% and Chevron 16.67%.
The NWS LNG venture’s first LNG train which is Australian first gas liquefaction unit was commissioned 34-year ago in 1989.
Browse Joint Venture’s current partners are Woodside Energy (operator) 30.60%, Shell 27.00%, MIMI 14.40%, BP 17.33% and PetroChina 10.67%. After Shell-BP recent deal conclusion, BP will increase its stake to 44% and possibly gain operatorship position.
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