Woodside Energy (ASX:WDS) faces an eight-year wait for regulatory approval that will increase its Browse Liquefied Natural Gas (LNG) Project capital expenditure by up to 78%.
A new report from Deloitte Access Economics shows that the project’s estimated capital expenditure has risen from $27.3 billion in 2019 to $48.7 billion in 2026.
Capital expenditure soared while the oil and gas producer negotiated a processing agreement and waited for federal environmental regulatory approval.
The company added a major carbon capture and storage component in 2023 that could inject up to 4 million metric tons a year of carbon dioxide emissions back into Browse reservoirs and cut emissions from the facility by 47%.
“The development and ongoing operation of the project represents one of the largest undertakings in Western Australian history and will require substantial capital investment,” the report says.
“This level of investment would place the project among the largest ever delivered in WA, with capital requirements broadly comparable to approximately six Westport programs (one of the largest government infrastructure projects in WA’s history) or two Sydney Metro West projects.”
Woodside reveals its mega project could contribute more than $141 billion towards national gross domestic product. It might add $56.2 billion of taxes, of which $19.8 billion would come from the petroleum resource rent tax.
At peak operation, the project is promised to create up to 4,760 direct and indirect full-time equivalent jobs.
“Browse is Australia’s biggest undeveloped offshore gas resource and represents a major opportunity for the nation, at a time when energy security matters more than ever,” CEO Liz Westcott says,
“Independent modelling shows Browse has the potential to power homes and businesses, support thousands of Australian jobs, and generate significant revenue for governments while also helping to manage the risks and costs of the [renewable] energy transition.”
The project involves exploring the Browse fields off the coast of North West Australia. Gas product would supply the ageing North West Shelf LNG facility, which recently had its lifespan extended by 40 years to 2070.
The Australian Department of Climate Change, Energy, the Environment and Water was preparing to provide final recommendations about whether the government should approve the project at the time of writing.
Woodside Energy is an oil and gas exploration, evaluation, development, production, and marketing company with assets in Western Australia.
Write to Richard Szabo at Mining.com.au
Images: Woodside Energy
