Woodside sold the project to an insubstantial company to avoid a few hundred million in decommissioning costs: now it and its competitors will pay the price.
Most gas in Western Australia is produced offshore and exported as LNG, with some reserved for domestic use. Production from the onshore Perth Basin is increasing. WA is the most gas-dependent state in Australia.
Woodside is confident it will not have to pipe gas to WA from its giant Pluto project despite the company’s five-year reprieve from the State’s domestic gas policy ending in May 2017.
