| |
5 Pages

Will Barossa backfill Darwin LNG?

Will Barossa backfill Darwin LNG?

Report summary

Will ConocoPhillips and its partners invest in the 3-tcf Barossa field offshore Australia to backfill the Darwin LNG plant, or will it be left to roll off contracts in 2022 and go empty? On the one hand, a backfill development should be globally cost-competitive to supply the LNG market post-2023, versus greenfield projects elsewhere. But on the other, is the project attractive and important enough to the current joint venture (JV) to justify US$4.4 billion in new capex?

We have modelled our version of this project plan, and with US$4.4 billion of spend to first gas it's not a small development. An IRR of 16% and NPV15 breakeven of US$8.17/mcf mean it stands in tricky territory: good enough to progress to FEED, but still far from certain. Progression to FID will depend on the commitment of the JV to the project. The alternative, of letting the Darwin LNG facility go empty, is undesirable. For the key participants, the project is fast approaching a 'do-it-or-sell-it' juncture.

What's included?

This report includes 1 file(s)

  • Will Barossa backfill Darwin LNG? PDF - 2.92 MB 5 Pages, 2 Tables, 2 Figures


This Upstream Oil and Gas Insight report highlights the key issues surrounding this topic, and draws out the key implications for those involved.

This report helps participants, suppliers and advisors understand trends, risks and issues within the upstream oil and gas industry. It gives you an expert point of view to support informed decision making.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research.

Proprietary data means a superior level of analysis that is simply not available anywhere else. Wood Mackenzie is the recognised gold standard in upstream commercial data and analysis.

  • Executive summary
    • Barossa Area map
    • Barossa Area development assumptions
    • Barossa Area model field metrics
    • Project timelines

In this report there are 4 tables or charts, including:

  • Executive summary
    • Will Barossa backfill Darwin LNG?: Image 1
    • Will Barossa backfill Darwin LNG?: Table 1
    • Will Barossa backfill Darwin LNG?: Table 2
    • Will Barossa backfill Darwin LNG?: Image 2
Requester's name : .............
Department : .............
Authoriser's Name : .............
Authoriser's signature : .............
Date : .............
Cost Centre : .............

Questions about this report?

Frequently Asked Questions
  • Europe: +44 131 243 4699
  • Americas: +1 713 470 1900
  • Asia Pacific: +61 2 8224 8898
contact us

Why Wood Mackenzie?

As the trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, we empower clients to make better strategic decisions with objective analysis and advice. Find out more...