You are using an older browser version. Please use a supported version for the best MSN experience.

Woodside's Scarborough-NW Shelf gas plan

AAP logoAAP 13/09/2016 Greg Roberts

Woodside Petroleum believes the Scarborough gas field off WA's north that it just paid $400 million for a stake in can be used to supply its onshore LNG plants before they run short.

Woodside's chief operating officer Mike Utsler said on Tuesday the company's North West Shelf and Pluto projects at Karratha were well positioned to be seriously considered for the development of Scarborough.

And despite falls in gas prices in recent years, he also predicted a global supply shortage by the mid-2020s, citing greater demand for LNG as a cleaner fuel and as a transportation fuel.

Woodside's North West Shelf plant, which was built in the 1980s and is Australia's oldest LNG plant, will start to suffer a supply shortfall by 2020.

However Mr Utsler will have to convince joint venture partners ExxonMobil and BHP Billiton, with the former saying last week it preferred an offshore floating LNG processing plant.

"I've positioned the North West Shelf and Pluto to be serious considerations to ensure the optimal development of Scarborough," Mr Utsler told reporters in Karratha.

The Scarborough gas would be piped 70-100km to the existing North West Shelf pipelines.

"What I can control right now is ensure that an option is in fact bringing it to onshore because of the efficiency and cost effectiveness and reliability of the operations that exist here, so it's at least considered in the economic evaluation," he said.

image beaconimage beaconimage beacon