Australian LNG player Woodside has reportedly decided to walk out of the Port Arthur LNG export project in Texas, led by the San Diego-based Sempra Energy.
Bloomberg reported on Thursday citing Woodside Chief Executive Officer Peter Coleman as saying that the Australian company informed Sempra it was quitting the LNG export project.
“It got to a point where it got below our investment returns and we said we need to put our money somewhere else,” Coleman was quoted as saying.
Woodside’s focus remains on unlocking the vast gas resources offshore Western Australia, including the $20.5 billion Browse LNG project.
Its partners in the existing North West Shelf LNG export terminal agreed to terms for processing third-party gas, which opens the possibility to process supplies from Browse, after concluding about 18 months of negotiations, Coleman was quoted as saying.
To remind, Woodside’s chief last month said that the company was considering options regarding the Port Arthur LNG project.
The project has a planned production capacity of 11 mtpa of LNG with the exports scheduled to start in 2023.
Sempra Energy signed a deal with the Polish Oil and Gas Company (PGNiG) for the delivery of 2 mtpa per year, over a 20-year period starting in 2023.
The agreement follows that with Kogas signed last year for cooperation on engineering and construction works, operations and maintenance activities, feed gas sourcing, offtake of LNG and that would see Kogas as a potential buyer of LNG as well as an equity participant in the project.
LNG World News Staff