Woodside's Browse project could face 10-year delay

The oil and gas giant is sticking to its June schedule for a decision on building the onshore gas processing plant near Broome.

But West Australian Premier Colin Barnett says any delays by Woodside and its partners could set the project back many years.

"If that was the decision that the companies came to, I would say the project would be delayed five to ten years, that would be the first consequence," Mr Barnett told ABC radio.

"I will be doing all I can to change the fundamentals of the project so it does work, and there are things that can be done."

Mr Barnett's comments come in spite of joint venture partner Shell's preference for a floating liquefied natural gas (LNG) operation.

Some analysts say the controversial proposal to build a gas plant at James Price Point, near Broome, is not economically viable due to escalating costs and challenges securing labour, prompting speculation that the partners could opt for a floating LNG option.

Some expect Woodside's final investment decision on Browse to be delayed by at least another year, meaning state government approvals for the project will lapse.

Mr Barnett confirmed that he held talks with Woodside chief executive Peter Coleman last week, reiterating his stance on the Kimberley gas project about it providing great economic and social benefits to the state.

"Peter and I had a discussion about a week ago and those discussions continue," Mr Barnett said.

"Woodside has given it a good crack to try and bring the gas onshore. I think that's what they want to do as a company. Some of their partners, probably Shell, don't want to."

He said one third of the Browse gas was owned by WA, while two thirds was controlled by the federal government.

"If this is an offshore project it won't be a Woodside project, it will be a Shell project." He also issued a warning to industry commentators backing a floating option.

"It's not your gas, that's the deal."