Woodside shelves James Price Point development

[Freo Big Fella]

http://au.news.yahoo.com/thewest/a/-/newshome/16692097/woodside-shelve-gas-hub-project/

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Woodside Petroleum has dumped plans for its controversial $45 billion liquefied natural gas project at James Price Point.​

In an announcement to the ASX this morning, Woodside says it will review alternative ideas with its joint venture partners in the Browse project.​

Woodside says the project "does not meet the company's commercial requirements for a positive investment decision".​

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Big win for the rent-a-crowd that's been dogging the project - sadly its highly likely the local indigenous population will miss out on the $1.5 billion education and health funding deal the community signed with Woodside.​

Not a great start to the new Parliament for Barnett - having them switch to FLNG would be up there with Labor losing INPEX to Darwin in terms of State Govt blunders.​

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[Ktrain]

At least Barnett made it decidedly clear he was pushing for it to happen onshore WA. In reality labour costs would equally be a deciding factor with the land access/environmental issues I would've thought. But you can't deny that grass roots social campaigns are definitely marking a mark nowadays.

I'm in Vancouver and coincidentally this article came out yesterday confirming Woodside as lodging an expression of interest in a Northern BC, Canada LNG site.

http://www.vancouversun.com/touch/b...e+export+projects+proposed/8224911/story.html

 

[Admiral Byng]

So what happens now?

The gas stays in the ground I guess, until such time that it becomes economical to extract it.

 

[Ice-Wolf]

So what happens now?

The gas stays in the ground I guess, until such time that it becomes economical to extract it.

I believe now the government begins the prostitute itself and bribe the resource giant game.

 

[tazzietiger]

Paul Howes on tv going off his head saying the govt should give serious consideration to taking back the lease and allow another company to build the project.

 

[Ice-Wolf]

Paul Howes on tv going off his head saying the govt should give serious consideration to taking back the lease and allow another company to build the project.

Maybe the Government should build the project themselves, is there anything stopping them creating a GBE resources company other than ideology?

 

[Keys]

Big blow to the local economy here. The activists will be happy but there's plenty of people that will be disappointed its been shelved albeit you won't see many of them on the news just the wood ducks who will be claiming they stopped it

James price point will go back to being an insignificant little spot that no one will visit or care about anymore

 

[Dry Rot]

Wasn't this project shelved because of the drop in gas prices? If so, I can't see how another party eg the Fed govt can change those numbers.

 

[yibbida]

What Woodside says:

"Woodside will propose to the joint venture a work program and budget for the remaining 20 months of the retention leases with a commitment to the timely development of the Browse resources," it added.

''[The decision] is driven by commercial risk and reward considerations and the proposed concept doesn't provide the economic return required to proceed with the project,''

Basically they have 20 months to do something otherwise they will loose the lease and another company could apply.


But the Coalition is blaming the Unions:

http://www.watoday.com.au/opinion/p...ollar-for-browse-gas-blow-20130412-2hpr4.html

"We will bring into check some of the outrageous industrial action going on, particularly from the CFMEU in WA," he said on Thursday.

Outrageous industrial action in WA? So "outrageous" that it no one in Perth has noticed.....

The Federal Government has said it is a Woodside decision:

http://www.watoday.com.au/business/...oom-still-to-peak-pm-says-20130412-2hpka.html

‘‘It’s an issue for the company, so it’s for them to deal with,’’

Gary Gray (try to spell his name with dyslexia!) added:

‘‘The gas and condensate fields in the Browse Basin were discovered in the early 1970s and the road to developing them has been a long one,’’ he said.

 

[The_Reaper]

Strictly an economical decision.

Pity that it wasn't onshore. The local people as well as the state as a whole would have benefited more.

 

[2Knights]

The Retention Leases have 20 months to run but they were awarded on condition that a Final Investment Decision be made by mid 2012 and Production Licences applied for. That condition has already been delayed 12 months.

http://minister.ret.gov.au/mediacentre/mediareleases/pages/retentionleaseconditions.aspx

I wouldn't bet on the Federal Minister taking away the Retention Leases - in practice this never happens, and there are existing RLs even older (Scarborough).

It's a shame JPP won't happen. The alternatives (FLNG, pipeline to NW Shelf) have their downsides -

No financial benefits for local communities derived from use of their land.
FLNG will provide minimal side-benefits for the nation, aside from FLNG design if this is done in Australia.
FLNG may have higher cut-off production rate (more gas left in ground at field's end-of-life).
Lack of nearby facilities will make other gas discoveries in the Browse Basin less economic to produce.
NW Shelf facilities won't have spare capacity for years to come. This option carries the risk of US gas exports taking off or China shale gas reducing their import needs.

 

[hoianbulldog]

http://au.news.yahoo.com/thewest/a/-/newshome/16692097/woodside-shelve-gas-hub-project/

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Big win for the rent-a-crowd that's been dogging the project - sadly its highly likely the local indigenous population will miss out on the $1.5 billion education and health funding deal the community signed with Woodside.​

Not a great start to the new Parliament for Barnett - having them switch to FLNG would be up there with Labor losing INPEX to Darwin in terms of State Govt blunders.​

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I heard Bob Brown interviewed this afternoon and he still want the 1% royalty paid to the indigenous community even though the processing will now happen offshore....... I laughed out loud when I heard his comments. Then he spoke about the fantastic business opportunities for the local community developing a whale watching industry for tourists............Out of curiosity, how many people need to whale watch to generate 45 billion dollars of investment?

http://mpegmedia.abc.net.au/newsradio/audio/20130412-woodsidebrown.mp3

 

[Eastern Rangers]

Unions aren't to blame.

The cost of building the think in the thing is what got in the way. Look at Gorgon.

 

[Max zero]

Out of curiosity, how many people need to whale watch to generate 45 billion dollars of investment?

Stop asking difficult questions like that.

http://au.news.yahoo.com/thewest/a/-/newshome/16692097/woodside-shelve-gas-hub-project/

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Big win for the rent-a-crowd that's been dogging the project - sadly its highly likely the local indigenous population will miss out on the $1.5 billion education and health funding deal the community signed with Woodside.​

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Of course it is. They don't have to deal with the economic consequences but get to pat themselves on the back for a job well done.​

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Tasmanians are also very good at this.​

 

[medusala]

Maybe the Government should build the project themselves, is there anything stopping them creating a GBE resources company other than ideology?

Previous WA government entry in to petrochemicals wasn't exactly a brilliant investment.

 

[Max zero]

Maybe the Government should build the project themselves, is there anything stopping them creating a GBE resources company other than ideology?

Money, expertise and risk.

 

[King Elvis]

Unions aren't to blame.

The cost of building the think in the thing is what got in the way. Look at Gorgon.

You don't think the Unions might be a factor in the prohibitive wages and conditions that we have here?

 

[Max zero]

http://www.abc.net.au/news/2013-04-15/bergmann-says-browse-deal-should-be-honoured/4629938

"The project was, during the negotiations, very marginal and it was going to be a tough project," he said.

But still gives us 1.5 billion anyway.

 

[Admiral Byng]

http://www.abc.net.au/news/2013-04-15/bergmann-says-browse-deal-should-be-honoured/4629938



But still gives us 1.5 billion anyway.

As the article said in the first line - the definition of wishful thinking.

 

[Total_Juddshanks]

The great tragedy of this is it was a once in a generation chance for aboriginal people to remain on country, and build a secure and affluent community.

I am sure the as yet unborn generations of kimberley kids facing welfare dependent hopelessness, the spectres of alcohol abuse, youth suicide and sexual and physical violence will be forever grateful to their great benefactor, Bob Brown for looking out for them.

The Greens support self determination by the indigenous people of australia- just so long as they don't get uppity about wanting a real future and do exactly what their environmentalist betters tell them to do.

 

[MaddAdam]

You don't think the Unions might be a factor in the prohibitive wages and conditions that we have here?

They might also be a factor in why the Australian industry is one of the safest in the world, if not the safest.

 

[Xsess]

Unions aren't to blame.

Look at Gorgon.

Contradictory statement.

 

[King Elvis]

They might also be a factor in why the Australian industry is one of the safest in the world, if not the safest.

No doubt, but also not relevant.

 

[Xsess]

Olympic dam, Port Hedland outer harbour and now James Price Point. Major projects canned in the last 12 months. Unions out of control and an incompetent federal government in bed with the greens (who's ex leader led the protests) and doing its utmost to tax the industry into the ground. At this juncture IMO it is in Australia's interest to take back those leases as offshore processing is not in Australia's interests. If Shell couldn't squeeze a viable project out of that resource then fine, they dont deserve access to it.

 

[Caesar]

Olympic dam, Port Hedland outer harbour and now James Price Point. Major projects canned in the last 12 months. Unions out of control and an incompetent federal government in bed with the greens (who's ex leader led the protests) and doing its utmost to tax the industry into the ground.

Union negotiating power with regards to greenfields developments is excessive and both sides of politics have admitted it needs to be curbed. That said, I have not heard it being cited as a major factor in the failure of this project to get off the ground.

PHOH and Olympic Dam were cancelled due to BHP coming under capital pressure from commodity prices, so I am not sure why they are relevant here.