Browse may face delays as NWS partners still at odds

THE giant Browse LNG development could face more delays after Woodside Petroleum CEO and managing director Peter Coleman told investors late Monday a processing deal with the five other owners of the North West Shelf Venture processing facility won’t meet its June deadline. 
Browse may face delays as NWS partners still at odds Browse may face delays as NWS partners still at odds Browse may face delays as NWS partners still at odds Browse may face delays as NWS partners still at odds Browse may face delays as NWS partners still at odds

Pluto

However, the final investment decision target of late 2020 remains. 
 
An initial deal was reached last year, but one partner in the NSWV- where Browse gas is planned to processed - has problems with the deal.
 
 
He  was conducting an investor and analyst tour in Karratha, the same day the Pluto LNG plant came back online after technical issues drew out scheduled maintenance, with Woodside earlier suggesting production for the calendar year would be at the lower end of guidance as a result. 
 
Pluto is slated to be expanded to two trains to accommodate gas from the Scarborough field Woodside (75%) and BHP (25%) share but that plan could be scuppered if a deal on Browse gas can't be reached, and Scarborough  gas is sent to the NWS instead. 
 
Shell Australia chairman Zoe Yujnovich first noted NWS problems last week at the Credit Suisse Energy in Australia conference in Sydney, suggesting "real issues" existed. 
 
BHP, BP, Chevron Corporation, Shell, Japan Australia LNG (a Mitsui-Mitsubishi joint venture) are equal partners with Woodside in the NWSV. 
 
Shell is also a partner in Browse, along with BP whose vice president of carbon management Gardiner Hill noted in May is a high CO2 field that BP was "still evaluating". 
 
Coleman also looked at recent LNG plant FIDs globally suggesting they could put downward pressure on long term pricing as supply grows. 
 
 "Toll processing agreements remain key to advancing the Burrup Hub vision featuring a 4.5 million tonne per annum capacity interconnect between Pluto and NWS to accelerate Pluto production. Finalising agreements is taking longer than anticipated, but it seems that the pricing spread is narrowing and a resolution is expected before end-CY19," RBC Capital Markets analyst Ben Wilson wrote. 
 
Wilson was one of the analysts invited to Woodside's Monday tour. 
 
"These agreements, together with marketing of up to 50% of project volumes, are needed to facilitate FIDs on both projects in calendar 2020  with Browse at the back end of the year".