PERTH (miningweekly.com) – Newly appointed Resources and Energy Minister Gary Gray has expressed his confidence that the Browse liquefied natural gas (LNG) project would still be developed.

Gray was responding to an announcement from ASX-listed Woodside Energy, which reported on Friday that the company was delaying the $45-billion Browse project, near James Price Point, for commercial reasons.

Woodside said, at the time, that it was considering other development options, including a floating LNG facility, to develop the Browse gasfields.

“The Browse project has the potential to benefit state and Commonwealth revenues, the Kimberley region and the Australian economy, as well as add significant capacity to Australia’s LNG export industry,” Gray said.

“Ultimately the decision on the development concept is a commercial one for the joint venture (JV), provided it can meet the requisite regulatory requirements.”

The Minister expected the National Offshore Petroleum Titles Administrator, in the Department of Resources, Energy and Tourism, to provide advice to him and the Western Australian Minister for Mines and Petroleum on the implications of Woodside's announcement.

“The JV’s five retention leases are currently in year four of the five-year term and are due to expire in December 2014. The JV is required by conditions on the retention leases to be in a position to take a final investment decision on the James Price Point development concept by June 25, 2013,” Gray said.

“It is not appropriate and would be prejudicial for me to speculate on the outcome of any consideration by myself and the Western Australian Minister for Mines and Petroleum of any future applications regarding the retention leases.”

The Browse project includes three gasfields estimated to contain a combined contingent resource of about 13.3-trillion cubic feet of dry gas and 360-million barrels of concentrate. First gas production has initially been slated for 2017.

The Browse LNG project is jointly owned by Woodside, Shell, BP, Chevron and PetroChina, which acquired its stake in the project through a $1.63-billion deal with PetroChina.