LNG (LIQUIFIED NATURAL GAS)

Voelte rides the storm

WOODSIDE Petroleum chief executive Don Voelte has downplayed worries the Pluto liquefied natural ...

Voelte rides the storm

Speaking to media after his last annual general meeting as the company's chief, he said the statement that "it may be hard to recover weather-related delays" in Woodside's quarterly report was just the company being cautious about losing four weeks of construction time to bad weather.

"Our mitigation plans have been working, we have been able to win back some time," he said.

This was despite Deutsche Bank and UBS saying they were factoring in a September start-up for the project.

Rather, Voelte said the company had reached the point where "we feel really good about the ultimate goal we've always had of building a second train with what we call nearby gas" and was considering using gas from the first train, which had reserves for 30-35 years, for the expansion train.

Woodside had continued to hold talks with third-party gas owners and had reached the phase of exploring options with one party.

"Our options are not just building another train, right now we're looking at how we'll fill up Pluto into a three, four-train mega project," he said.

A four-train project could have the capacity to produce up to 17 million tonnes of LNG per annum, outstripping the North West Shelf Venture, which is capable of producing 16.3MMtpa.

Voelte also left the door open for Chevron to bring Wheatstone through Pluto - a hope Woodside had entertained before the supermajor opted to turn the project into a competing gas aggregation project - though he admitted that it was "not their plan".

Moving on to the Browse LNG project, Voelte had a one-word response to comments that non-governmental organisations had held up the project.

"Garbage."

He rejected claims that Woodside's partners did not want to site the LNG plant at James Price Point in the Kimberley, saying the joint venture was pursuing the project and that the partners had paid their bills and approved a bigger budget.

"It is going at lightning speed, but we promise not to cut any corners with the indigenous folks, not to cut any corners with the communities, not to cut any corners with engineering and quality design, and not to cut any corners with environmental sensitivities."

Voelte also lashed out at the East Timor government, saying he was disappointed it had failed to approve the Sunrise development and that by doing so were "objecting to promoting the quality of life and improving the livelihood of their people".

He said East Timor's exploration and production efforts outside of Sunrise had been unsuccessful with about nine straight dry holes drilled.

"They need Sunrise … [which] would be a $13 billion boon to them over [its] life."

Voelte added that while Woodside had people "knocking on the door" to buy Sunrise, it was not the company's way to give up.

Meanwhile, Woodside chairman Michael Chaney reiterated during the AGM that the company did not support a price on carbon that did not recognise the "global role LNG plays in reducing emissions".

"Placing a carbon price on Australian LNG risks two outcomes. Customers either look past Australia for cheaper supplies of LNG produced by countries which do not have a carbon price, or they continue to use higher-emitting energy sources, such as coal," he said.

Chaney also noted the company's selection process for its new chief executive was going according to plan. The board of directors hoped to be able to announce a candidate during the current quarter.

TOPICS:

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

editions

ENB CCS Report 2024

ENB’s CCS Report 2024 finds that CCS could be the much-needed magic bullet for Australia’s decarbonisation drive

editions

ENB Cost Report 2023

ENB’s latest Cost Report findings provide optimism as investments in oil and gas, as well as new energy rise.

editions

ENB Future of Energy Report 2023

ENB’s inaugural Future of Energy Report details the industry outlook on the medium-to-long-term future for the sector in the Asia Pacific region.

editions

ENB Cost Report 2021

This industry-wide report aims to understand current cost levels across the energy industry