Western Australian Treasurer Roger Cook has fired a warning shot at the Northern Territory, urging it not to poach the giant Browse gas field for Darwin's liquefied natural gas (LNG) industry. The comments come amid growing competition between states to secure the massive resource, which is estimated to hold trillions of cubic feet of gas.
Strategic importance of Browse
The Browse gas field, located off the Kimberley coast, is one of Australia's largest untapped gas reserves. Its development has been stalled for years due to high costs and regulatory hurdles. However, recent interest from the Northern Territory has reignited debate over where the gas should be processed.
Mr Cook emphasised that Western Australia has the infrastructure and expertise to handle Browse gas, warning that diverting it to Darwin would undermine the state's long-term economic interests. “We have invested heavily in our LNG industry, and it would be a mistake to see that investment undermined,” he said.
NT's ambitions
The Northern Territory government has been actively courting energy companies, offering incentives to process Browse gas at Darwin's existing LNG facilities. Chief Minister Natasha Fyles argues that the project could create thousands of jobs and boost the territory's economy.
However, Mr Cook countered that the environmental and economic costs of piping gas across the continent would be prohibitive. “It makes no sense to transport gas thousands of kilometres when we have the capacity to process it here,” he added.
- The Browse field is estimated to contain 13.8 trillion cubic feet of gas.
- Development costs have been estimated at over $80 billion.
- Woodside Petroleum is the lead operator of the project.
Political and economic implications
The dispute highlights the growing competition between Australian states for major energy projects. With global demand for LNG rising, particularly from Asia, both Western Australia and the Northern Territory are keen to secure the economic benefits.
Industry analysts say the final decision will depend on a range of factors, including tax incentives, infrastructure costs, and environmental approvals. “This is a complex decision that will shape Australia's energy landscape for decades,” said energy expert Dr. Sarah Johnson.
Mr Cook's warning signals that Western Australia will not step aside without a fight. He called on the federal government to ensure a coordinated approach to developing the Browse field, warning that inter-state rivalry could delay the project further.
Next steps
The Browse joint venture partners are expected to make a final investment decision within the next two years. In the meantime, both states are likely to intensify their lobbying efforts.
“We will continue to make the case that Western Australia is the natural home for Browse gas,” Mr Cook concluded. “It's not just about economics; it's about ensuring the long-term prosperity of our state.”
