Woodside Browse LNG Project Cost Balloons to $35 Billion

Woodside Energy's Browse LNG project, Australia's largest untapped gas field, has seen its estimated cost surge to $35 billion, according to a new report commissioned by the company. The project, first proposed in 2018, was initially expected to cost around $20 billion. The significant cost increase is attributed to additional requirements for carbon capture and storage (CCS) and prolonged regulatory approvals.

The Browse project involves developing the Calliance, Torosa, and Brecknock fields and transporting gas to the existing Karratha Gas Plant. The cost escalation highlights the growing challenges of developing large-scale LNG projects in Australia, where environmental regulations and community opposition have intensified. For energy traders, this could mean tighter global LNG supply in the long term, as high costs may deter investment in new capacity. However, near-term price impacts are limited, as the project is still years away from production. Check NowPrice's fuel page for current LNG and natural gas pricing.

Looking ahead, Woodside will need to secure final investment decision approvals, which may face further scrutiny. The project's viability will depend on global LNG demand, particularly from Asia, and the company's ability to manage costs. Investors will watch for updates on CCS technology and regulatory timelines, as any further delays could push costs even higher.