6 hours Ago By Adrian Black
Australian oil and gas giant Woodside has made a final decision to proceed with its liquefied natural gas project in the US. The $US17.5 billion ($A27.
2 billion) development in the state of Louisiana is expected to produce 16.5 million tonnes of LNG per year, taking the company's annual LNG delivery to 24 million tonnes next decade - around five per cent of global supply. "Louisiana LNG is a game-changer for Woodside, set to position our company as a global LNG powerhouse and enable us to deliver enduring shareholder returns," Woodside chief executive Meg O'Neill said in a statement.
"We have secured quality partners and are now ready to take a final investment decision." US investment firm Stonepeak will provide $US5.7 billion of the total cost.
The project would connect Woodside to low-cost US gas resources and promises an asset life-span of more than 40 years with an aim of first output in 2029, the company said. "This supply can target strong and sustained demand for LNG expected in both Asia and Europe, as those markets pursue energy security and decarbonisation aspirations," Ms O'Neill said. Woodside claimed its greenhouse gas emissions targets would be unchanged by the project, drawing the ire of environmental groups.
According to Market Forces chief executive Will van de Pol, the project would release emissions equivalent to running Australia's largest coal-fired power plant for another 120 years. "Our analysis shows Woodside's decision to bulldoze ahead with its risky Louisiana LNG project will add 1.6 billion tonnes of climate emissions over its 40-year lifetime," he said.
"Woodside has committed $US11.8 billion to a project that would export harmful gas until the 2070s." Mr van der Pol said the gas expansion strategy was consistent with reaching a catastrophic level of global warming, which was ultimately enabled by major shareholders including Australia's largest superannuation funds.
"Big investors like AustralianSuper and HESTA can't wash their hands of these massive new emissions committed on their watch, and they must escalate pressure by voting against directors at Woodside's AGM next week." AustralianSuper and HESTA have been contacted for comment..
