Woodside Energy's delayed Browse Liquefied Natural Gas project is expected to cost 35 billion dollars

Woodside Energy has commissioned a report that estimates the cost of its long-delayed Browse project to be A$48.7billion ($35.2billion).

The proposal to develop Australia's biggest?untapped gas resources was submitted to?regulators? in 2018. It was estimated at A$27.3billion in 2019 but in 2023, a major component of carbon capture and storing (CCS) was added to the plan.

Environmental approvals and negotiations over a processing contract have slowed down the Browse project.

Deloitte's economic impact analysis, commissioned by the Woodside company and released on Monday, revealed that the total capital expenditure for this project would be A$48.7billion. The figure was based on different assumptions, and the base year was different from that of the 2019 estimate.

The report said that it would be "one of the biggest projects in Australian History based on capital expenditure". It would also create 3 088 full-time positions and generate A$56.2 Billion in tax payments.

Woodside proposes to use Browse fields in northwest Australia to supply North West Shelf LNG, which was given a 40-year extension of life to 2070 last year.

The CCS component aims to return up to 4,000,000 metric tons of carbon dioxide emissions per year to Browse reservoirs, and reduce direct emissions by 47%.

Environmental groups have opposed the project. They claim it will threaten Scott Reef, which is home to endangered pygmy whales and turtles.

ABC reports that the environment department will give a final opinion to the government next month on whether or not to approve the project.

Woodside's 'partners' in Browse include BP, Japan Mitsui & Co, Mitsubishi and the international division of PetroChina. Reporting and editing by Christine Chen, Sydney.

(source: Reuters)