Woodside may exit Sempra Texas LNG export project
Woodside Petroleum is weighing up whether or not it should continue its investment in a US LNG export terminal, its CEO says.
Peter Coleman, who was speaking at the World Gas Conference in Washington DC, said the project’s ability to provide Australia’s biggest independent oil and natural gas company with an adequate return is “very challenged”.
“We’ve got to make some decisions pretty soon about our continued pursuit (of Port Arthur) with Sempra,” said Coleman, noting that Woodside has been paying part of the cost to develop the project.
“We don’t have an investment in (Port Arthur): what we’ve been doing is just paying our way, and whether that is going to give us an adequate return, I would say today that is very challenged,.”
In February 2016, Sempra and Woodside agreed to share development of Port Arthur that could result in Woodside buying half the project once the parties made a final investment decision to build the facility.
Officials at Sempra were not immediately available for comment.
The Port Arthur LNG project includes two liquefaction trains capable of producing up to 13.5 million tonnes per annum of LNG, up to three storage tanks and facilities to load LNG onto ships.