Woodside Explores $12 Billion Australian Gas Project

Australia's largest natural gas exporter is exploring new investments in addition to the $12 billion Scarborough development approved last year, BNN Bloomberg reported on April 26. The project is expected to require fresh supply to ease market tensions.

Neill, chief executive of Perth-based Woodside Petroleum, said in an interview that the most competitive was the developer of the Browse project. The multi-billion-dollar partnership with big players such as BP and Shell has struggled to get off the ground, after plans to develop it into a floating LNG plant were scrapped in 2016 due to weak prices.

"The industry has been under-invested over the past few years," O'Neill said by phone. "We're seeing a stretched market structure -- more investment is needed to fix that."

Europe is expected to increase LNG imports to reduce reliance on pipeline fuels, which will outweigh the extra supply and keep prices high. High interest rates benefit Woodside. The company said Tuesday that first-quarter sales roughly doubled from a year earlier.

Neil said the proposed merger with BHP Group's oil and gas business could also help open up investment in fields outside Australia. BHP Billiton has several gas assets in Trinidad and Tobago that could supply gas to the country's Atlantic LNG export plant, he said.