West Australian Premier Colin Barnett's push to keep the Browse gas project onshore has suffered another blow, with lead proponent Woodside recommending a floating offshore project to its joint venture partners.
The Perth-based oil and gas giant earlier this year indefinitely shelved plans to build a multi-user gas processing hub at James Price Point, north of Broome - despite having already cleared state environmental approval hurdles - saying it would consider other development scenarios including floating LNG.
On Monday, WA's Chief Justice Wayne Martin handed down his finding in a Supreme Court challenge to the environmental approval, deeming it unlawful.
The Wilderness Society, and Goolarabooloo elder Richard Hunter, had argued conflicts of interest in the Environmental Protection Authority (EPA) assessment process resulted in just one EPA board member - chairman Paul Vogel - making the final decision.
They also said the state's then-environment minister Bill Marmion had erred by granting his approval despite the conflicts. Chief Justice Martin agreed with both arguments.
And on Tuesday, Woodside said it had resolved to recommend to its Browse joint venture participants - Japan's Mitsui, PetroChina, Shell and BP - to use floating LNG (FLNG) technology to commercialise the project's three gas fields.
"This concept would involve using Shell's FLNG technology and Woodside's offshore development expertise for the Browse LNG development," the company said in a statement.
"The selection of FLNG as the development concept requires the approval of the Browse joint venture participants before progressing through to the basis of design phase."
Shell is a leader in FLNG and is using the technology to develop its Prelude and Concerto gas fields off the coast of Western Australia.
Woodside said it had evaluated alternative development concepts for Browse, including a pipeline to existing facilities in the Pilbara and a smaller onshore project in the Kimberley.
Chief executive Peter Coleman said it was pleasing that Woodside had been able to complete the evaluation of alternative development concepts quickly.
"Through this review, a compelling case has emerged for floating LNG as the best option for early commercialisation of the world-class Browse resource," Mr Coleman said.
Mr Barnett has repeatedly said he favoured an onshore project to floating LNG because it would bring more benefits to the state, including jobs.
He also has concerns about the safety of FLNG, specifically the logistics of evacuating the big purpose-built vessels far off the coast when cyclones hit.
