Woodside’s $34 Billion Browse Named State Significant Project

Woodside Energy's Browse LNG project, located offshore Western Australia, is now expected to cost $35 billion, according to MarketScreener Australia, and has faced considerable delays. The project, considered Australia's largest undeveloped gas resource, has been on the drawing board for decades due to various regulatory, commercial, and cost challenges. Despite these hurdles, rising LNG demand in Asia-Pacific and concerns over future domestic gas supply in Western Australia have renewed focus on advancing the project.

The Western Australian Environmental Protection Authority (EPA) is expected to release its recommendations on the project in 2025. Reports from February indicated the EPA's preliminary comments considered the proposal terms "unacceptable." Environmental groups oppose the development, citing threats to endangered species like Pygmy Blue Whales and Green Turtles, and the risk of pollution and oil spills. The project requires approvals from both state and federal governments, with the federal Labor government viewing gas as a critical component of the country's energy transition.

Woodside Energy has increased its interest in the Browse Joint Venture by exercising pre-emption rights to acquire PetroChina International Investment (Australia) Pty Ltd.'s 10.67% stake. This move brings Woodside's interest from 30.6% to 41.27% and involves a payment of $225 million to PetroChina, plus reimbursement for cash call contributions since June 30, 2025. An additional contingent payment of $175 million is planned if a final investment decision is made for the Brecknock, Calliance, and Torosa gas fields by June 30, 2032. This acquisition highlights Woodside's commitment to progressing the proposed Browse-to-North West Shelf development to maximize long-term shareholder value and align its interests across the upstream Browse resource and the North West Shelf processing infrastructure. The company aims for the project to support the production of 11.4 million tonnes per year of LNG, liquefied petroleum gas, and domestic gas.