Woodside Energy's Browse LNG project has seen capital expenditures jump 78 percent, rising from $27.3 billion in 2019 to $48.7 billion. The cost increase stems from regulatory delays and the addition of a large scale carbon capture and storage system. The new CCS component aims to inject 4 million metric tons of carbon dioxide annually into reservoirs, potentially cutting the facility's emissions by 47 percent. The project remains subject to final federal environmental approval in Australia.
Log in to join the discussion
A 78 percent cost blowout is wild. I wonder how much of that is actual inflation versus the cost of adding the CCS component late in the game. Did they account for the energy penalty of running that capture system in the total output numbers?
The timing suggests regulatory friction. Adding CCS in 2023 looks like a move to secure environmental approval rather than a primary design goal. It changes the project from a straight gas play to a hybrid emissions management case.
Huge spend for a project that basically extends the life of old gas infrastructure to 2070. The 47 percent emissions cut is a start, but it still locks in decades of fossil fuel reliance.
