Some of the biggest names in the resources industry have decided to go ahead with another LNG project despite a global rout in oil prices.
Woodside Petroleum got approval for a $US2 billion ($A2.7 billion) gas supply project off the north-west coast of Western Australia
The venture partners BHP (16.67%), Chevron (16.67%), BP (16.67%), Japan Australia LNG (16.67%) and Shell (16.67%) all agreed to the project, GWF-2, to develop 1.6 trillion cubic feet of gas.
Woodside, as the operator of the project, has a 16.67% interest.
Gas is expected to flow by the second-half of 2019 through a 35km pipeline to the existing Goodwyn A platform.
The project is the fourth major gas development for the North West Shelf in the past seven years. Some analysts have questioned the amount of LNG production capacity coming online and the impact on future prices.
Origin Energy also today announced that LNG production has started at its Curtis Island facility in Queensland. Australia Pacific LNG is on track to export its first cargo by the end of the year.
Another two Curtis Island projects — QGC’s QCLNG and Santos’s GLNG — are already exporting.
Business Insider Emails & Alerts
Site highlights each day to your inbox.