Woodside Petroleum expected to go ahead with Browse liquefied natural gas project

In some positive news for resource-extraction capex, reports that Woodside Petroleum is likely to announce that it and its partners are to go ahead with Browse liquefied natural gas project, building one or two floating LNG plants

• The project was abandoned in April
• But said an onshore development remained an option
• Woodside is expected to inform government of its decision within two weeks

The Australian is carrying the report

Browse on track for new LNG plan (gated)

Note: Other press are a little more sanguine: Floating LNG most viable: Woodside

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The drying up of capex has been a big concern for the RBA, and has been an important inout to its decision to lower rates in order to encourage the transition of investment into other sectors of the economy. Bringing this project back on line gives the economy more time for the adjustment process. At the margin it delays, or reduces, the potential for further interest rate cuts and is therefore supportive of the Australian dollar.