Woodside dumps $45b James Point project

Woodside has decided not to go ahead with a LNG processing plant at James Price Point. Source: AFP

WOODSIDE Petroleum has dumped plans for its controversial $45 billion liquefied natural gas project at James Price Point in the North-West.

The energy giant says it will review alternative ideas with its joint venture partners in the Browse project.

Premier unaware

Yesterday, WA Premier Colin Barnett said that he had not been informed of the decision.

Asked by Opposition leader Mark McGowan if he had been advised by Woodside that the project had been rejected by the consortium, Mr Barnett today told Parliament it was not for him to divulge market-sensitive information.

The Sunday Times revealed in January that the proposed LNG hub in the Kimberley was unlikely to proceed because of escalating costs that threatened its profitability.

The Woodside joint venture, which had been due to announce a decision before June, has decided against proceeding with the onshore hub at James Price Point, which has attracted fierce opposition from environmentalists and many locals.

The decision has torpedoed a $1.5 billion benefits package negotiated with native title claimants, the Goolarabooloo Jabirr Jabirr, although some compensation may be negotiated.

PerthNow understands the final decision not to proceed came after a meeting on Monday night.

Greens MP Robin Chapple called on the state government to rescind the Browse Land Agreement Act.

"If it doesn't, the sword of Damocles will hang over the Kimberley for the next 10 years,'' he said in a statement.

"It is a clear victory that Woodside and their partners have seen sense, but the state government continues to hold the Kimberley to ransom while this Act continues to operate.''

The project has been hotly debated in WA, with Mr Barnett arguing the LNG must be processed onshore to maximise benefits to WA and particularly local Aboriginals.   

Broome is a town divided over the project - while there is support for it, some believe the LNG should be processed offshore, while others do not want it to go ahead at all.

Just yesterday, Royal Dutch Shell's Ann Pickard restated the organisation's preference for floating LNG - arguing it would put WA at the forefront of innovation in the industry.  

Mr Barnett is bitterly opposed to the floating LNG option, saying WA would miss out on thousands of construction jobs and royalties.  

Recently-appointed Federal Resources Minister Gary Gray has previously voiced his support for the floating technology.

Broome Chamber of Commerce executive officer Maryanne Peterson said several contractors had been told not to proceed with work, such as ground clearing.
 
"(Woodside) have decided not to proceed with some activities that they were going to undertake prior to FID (final investment decision)," she said.
 
"We don't know whether this work is just being postponed or whether they already had enough information collected to make a decision - we don't know what it really means."

More to come

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Former Qantas boss James Strong dies

Tributes have poured in for former Qantas chief James Strong who died from complications after surgery. SKY News

James Strong was an accomplished business leader and man of varied interests, with an appetite for adventure. Picture: Stuart Mcevoy Source: News Limited

TRIBUTES are pouring in for former Qantas chief James Strong, who has died aged 68.

Mr Strong died on Sunday in Sydney from complications following surgery, his family said in a statement.

"A beautiful man and a great loss. He will be profoundly missed by many," his family said.

At the time of his death, Mr Strong was the chairman of the V8 Supercars championship, The Australian reports.

Formula One driver Mark Webber posted his condolences to Twitter: “Sorry to hear the news that James Strong has passed away. He was very special towards my junior racing career. Great guy. Will be missed.”

Strong, who earned the nickname “Mr Bow Tie” for his sartorial elegance and preference in neckwear ran Qantas between 1983 and 2001. In a varied career he also chaired Insurance Australia Group, Rip Curl Group and the board of Woolworths. He was a director of Dorna Sports, which manages MotoGP worldwide.

His interest in sport was not confined to the boardroom. Strong was himself an enthusiastic motorbike rider, as well as a pilot and mountaineer. He was to have chaired the local organising committee for the 2015 ICC Cricket World Cup.

A love of opera was another opportunity to exercise his penchant for elegant attire.

Strong was made an Officer of the Order of Australia in 2006 for services to business and commerce and to the arts as an administrator and philanthropist.

ABC managing director Mark Scott summed up a life lived well on Twitter: "Saddened to hear of the death of James Strong. Captain of industry, advocate for the arts, adventurer, gentleman, and wonderful bow-ties."

Strong was also chairman of Kathmandu Holdings.

Kathmandu CEO Peter Halkett said he was very sad to lose his chairman and mentor.

"I was always able to count on his full support during some challenging periods that Kathmandu has experienced as a public company," he said.

Newly-appointed interim Kathmandu chairman John Harvey said Mr Strong played a critical role in securing the company's initial listing.

"His loss will be felt throughout the business community," he said.
 

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James Hardie trims earnings forecast

BUILDING products group James Hardie has trimmed its earnings forecast for the year, saying conditions in the housing market remain uncertain.

The group today revealed it had made a net operating profit of $US31.5 million ($30.95 million) in the third quarter to December 31, up from a loss of $US4.8 million ($4.72 million) a year earlier.

The results include the company's asbestos-related costs, plus regulatory costs and tax adjustments.

Excluding those costs, operating profit rose to $US28.8 million ($28.29 million) from $US27.7 million ($27.21 million).

Chief executive Louis Gries said that while the US housing market had gained momentum, earnings growth had been constrained by lower sales prices and higher costs.

But, he said, if the US market continued its recovery, earnings were expected to rise.

However, conditions in Australia remained subdued and the group did not expect a substantial pickup soon.

The group downgraded its full year earnings forecast, excluding the asbestos and other costs, to between $US136 million ($133.61 million) and $US141 ($138.53) million.

James Hardie's net operating profit for the nine months to December 31, excluding asbestos and other costs, rose to $US113.1 million from $US109.3 million (to $111.12 million from $107.38 million). Including the costs, net operating profit fell seven per cent to $US123.6 million from $US115 million ($121.43 million from $112.98 million).

Mr Gries said that in anticipation of a market recovery in the US, James Hardie would expand its production capacity. It will spend $US34 million ($33.40 million) reconfiguring and refurbishing a plant in California, which it had closed in 2008 but now intends to reopen in 2014.

The group said that if it does not undertake any sharebuybacks between now and announcing its full year results in May, it planned to lift its dividend payout ratio. The final unfranked dividend for the year is expected to be 35 US cents, down from 38 US cents the previous year.

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