Rob Cole, executive director of Australian offshore energy firm Woodside, recently appeared before the Western Australian State Government parliamentary inquiry into floating liquefied natural gas (FLNG) technology, reports the ABC.
Framing questions around the company's planned use of FLNG technology, as well as any economic implications, the committee focused on Woodside's move to choose FLNG technology for the development of the Browse Basin over an onshore terminal at James Price Point.
Earlier in the year, Woodside announced the scrapping of the onshore terminal option, citing ballooning costs.
Reaffirming the company's commitment to the state, Mr Cole said that FLNG technology was the best option for Australian offshore energy to remain globally competitive.
But the executive director would not say what the impact of the new technology would be on employment or contract support from local companies, a point fiercely disputed by WA Premier Colin Barnett.
With FLNG vessels being primarily constructed in countries such as Japan and South Korea – with Samsung Heavy Industries building the mammoth 488-metre FLNG vessel for Shell's Prelude Project, the ABC said it's unlikely such a large vessel would be built in Australia, thus reducing the number employment opportunities a traditional onshore platform would provide.
However, Woodside's Shaun Gregory confirmed all associated contracts would be put out to tender, encouraging competition and allowing Western Australian businesses, "to be a part of this new technology", continued the ABC.
The project would still require hundreds of local engineering jobs and over a thousand jobs on the platforms.
For the James Price Point site, meanwhile, Premier Barnett is seeking to acquire the land for a supply base for the project, using a state claim of 15 per cent of the Browse gas reserves. Woodside disputes this figure, believing it to be under five per cent, the ABC concluded.
Source: ABC
Disclosure: The Baird family, publishers of Ausmarine, are shareholders of Woodside Petroleum
