The joint venture has said it will consider other potential development options in addition to a floating LNG (FLNG) concept to develop the Petrel, Tern and Frigate natural gas fields.
As a result, the FLNG concept for the project will not be taken into front-end engineering and design (FEED), with the joint venture partners commenting that FLNG development does not meet the companies’ commercial requirements.
Santos received a cash consideration of approximately $212 million when the Bonaparte joint venture was formed, and has received a full carry on study and development costs by GDF SUEZ.
The move follows recent comments from Chevron Australia Managing Director Roy Krzywosinski that rising costs are seeing investment for local LNG projects go elsewhere.
“Australia does face increasing Â¬global LNG competition and this is coming from the United States, Canada and East Africa and even Papua New Guinea and so there are lot of people out there trying to play for that market gap,”? Mr Krzywosinski said.
“The message here is that Australia needs and must be proactive if we are to capture the projected supply shortfall opportunities.”?
The Bonaparte LNG Project is a joint venture between GDF SUEZ (60 per cent and operator) and Santos (40 per cent) with the initial plans being to develop a 2 MMt/a floating liquefaction project in the Bonaparte Basin, in the Timor Sea.