Friday, November 14, 2008

Australia- Let the Games Begin: Woodside May Float LNG Plant To Avoid Carbon Scheme

From Dow Jones via CNN Money:
Woodside Petroleum Ltd. (WPL.AU) Thursday said it is considering floating a possible multibillion dollar liquefied natural gas, or LNG, processing plant in East Timorese waters to avoid the potential costs of a carbon emissions trading scheme, or ETS, in Australia.

Already a vocal critic of the federal government's proposed ETS in its current form, Woodside Chief Executive Don Voelte said the Sunrise LNG project "could be the first project Australia loses" because of what he called "carbon leakage".

Building an ETS framework has become a tough balancing act for Australia's center-left Labor government, which wants to be seen to be reducing Australia's carbon emissions without crippling industry.

Its proposed ETS does not provide carve-outs to local LNG producers.

Players like Woodside and the local arm of U.S energy giant Chevron Corp. have voiced concerns that they won't be able to compete with overseas competitors that don't have to pay for carbon....MORE