The Woodside Petroleum-led Browse FLNG project has reached a major milestone after receiving federal Australian environmental approval, albeit with strict conditions imposed.
The environmental tick of approval covers the installation, operations and decommissioning phases for the development of the Torosa, Brecknock and Calliance fields using FLNG technology. The three fields, located about 425km north of Broome in the Browse Basin, will underpin Browse’s ability to produce 12 million tonnes per annum of gas.
The environmental approval will remain valid until 2070, with one of the conditions stating that work on the development must begin within the next five years.
Australia’s Department of Environment has slapped 26 conditions on its conditional approval for Browse, with a majority of the conditions relating to the need to protect and minimize the impact of operations on marine life contained in Scott Reef, located in the Browse Basin.
Under the conditions stated, the Browse joint venture is banned from releasing hydrotest fluid into the Scott Reef region while production-induced subsidence cannot exceed 100mm at Scott Reef.
Furthermore, the Browse proponents will need to develop a coral health and water quality management plan to protect the habitat of threatened and migratory species in the Scot Reef region.
Woodside will not be able to place accommodation floatels within the reef region and must follow standard management procedures of the Environment Protection and Biodiversity Conservation Act to minimize impacts to whales which migrate past the reef.
The federal environmental approval will bode well for the projects final investment decision, expected to be made at the end of 2016. The project, however, still requires the environmental greenlight from the Western Australian government.
The Woodside-operated Browse JV counts Shell, BP, Japan Australia LNG and PetroChina as its partners. Browse is currently in the FEED stage which will assist in finalizing the costs and technical definition to enable a final decision.
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