Shell to sell Browse stake to BP

A unit of LNG giant Shell has signed a deal with BP to sell its interests in the Woodside-led Browse project in Australia.

Shell Australia revealed the deal for the 27 percent stake in the Browse project in a statement issued on Saturday saying that the agreement remains subject to regulatory approvals.

The firm did not disclose any financial details regarding the deal.

“Browse remains an important Australian resource which if developed will provide much needed energy to customers as the energy market transitions towards lower carbon energy,” Shell Australia said.

“Shell regularly assesses its portfolio to inform capital allocation and maximize returns and performance however, the Browse asset is no longer a strategic fit in the context of Shell’s global portfolio,” it said.

BP Developments Australia, a unit of BP, currently has a 17.33 percent stake in the project.

Following completion of the deal, BP would have a 44.33 percent stake in the project.

Japan Australia LNG, a joint venture of Mitsubishi and Mitsui, owns a 14.4 percent stake, while PetroChina International, a unit of PetroChina has a 10.67 percent.

Woodside leads the project with a 30.60 percent stake.

The Australian LNG firm said in September last year that it was progressing with its plans to send natural gas from the Browse Basin offshore Western Australia to North West Shelf’s Karratha gas plant on Burrup peninsula.

Woodside and its partners are proposing to develop the Brecknock, Calliance, and Torosa fields located approximately 425 km north of Broome in the offshore Browse Basin.

The proposed development concept includes two floating production storage and offloading (FPSO) facilities delivering 11.4 Mtpa of LNG/LPG and domestic gas, and an about 900 km pipeline to existing NWS project infrastructure.

The Karratha gas plant in Western Australia, part of the NWS project, shipped its 6000th cargo of LNG in September last year.

It has five LNG trains with a capacity of 16.9 million tonnes per year. Also, it features domestic gas trains, condensate stabilization units, and LPG units.

Australia’s oldest LNG plant has been liquefying gas from fields located off the north-west coast of Australia since 1989.

However, these fields are running out of gas and the project is now shifting its focus towards a different business model aimed at processing gas from third parties.

- Advertisements -

Most Popular

Report: Egypt’s EGAS charters Hoegh LNG’s FSRU

The Egyptian Natural Gas Holding Company (EGAS) has chartered Hoegh LNG's floating storage regasification and storage unit, Hoegh Galleon,...

Equinor says nobody injured after leak at Hammerfest LNG

Norway’s Equinor has confirmed that there were no injuries following a hydrocarbon leak at its 4.3 mtpa Hammerfest LNG...

Glenfarne’s Texas LNG inks new deal with EQT

US natural gas producer EQT has entered into a second heads of agreement for liquefaction services from Texas LNG’s...

More News Like This

Mitsui: no decision on Adnoc’s LNG project

Japan's trading house Mitsui & Co said nothing has been decided on an LNG project in the United Arab...

Woodside: largest compressor module arrives at Pluto Train 2 site

Australian LNG producer Woodside has received the largest compressor module from Indonesia at the Pluto Train 2 project site...

Woodside’s Scarborough project 62 percent complete

Woodside's Scarborough and the second Pluto LNG train projects were 62 percent complete at the end of the first...

Shell launches largest bio-LNG plant in Germany

A unit of LNG giant Shell has launched what it says is the largest bio-LNG production plant in Germany. The...