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The $40 billion floating Browse LNG project off Western Australia has been dropped

Der Traktor by artist Markus Hofer at Sculpture By The Sea 2016 at Cottesloe Beach in Perth. Paul Kane/Getty Images

The proposed Browse floating liquefied natural gas project off Broome in Western Australia has become a casualty of the rout in oil and gas prices.

Woodside Petroleum says the Browse joint venture members have decided not to go ahead in the current economic and market environment.

“We have undertaken a comprehensive and rigorous process to assess all elements of the development,” says Woodside CEO Peter Coleman.

“The decision represents a disciplined approach to large-scale capital investment and is consistent with our requirements for a development concept to be commercially robust across a range of scenarios.

“Woodside remains committed to the earliest commercial development of the world-class Browse resources and to (floating) FLNG as the preferred solution, but the economic environment is not supportive of a major LNG investment at this time.”

Woodside, like other energy companies, has been cutting spending in a bid to catch falling commodity prices. Its 2015 full year revenue was $4.496 billion, or about 36% less than the $7.076 billion in 2014.

Its interest in the Browse resources is 30.6%. Shell Australia has 27%, BP ​17.33%, Japan Australia LNG (MIMI Browse) ​14.4% and PetroChina International Investment ​10.67%.

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