Woodside Petroleum is set to announce that it will pursue a floating liquefied natural gas (LNG) plant for its Browse project. By selecting that option, Woodside and its partners, Shell and BHP Billiton, are abandoning initial plans to construct an offshore plant at James Price Point which would have cost the company at least $50 billion.

The West Australian government has been pushing for the onshore option because of the additional jobs the venture would generate, plus income for the state coffers.

"It allows us to manage our capital requirements much better because you are not hitting the next two weeks with tens of billions of dollar are once," The Australian quoted Woodside Chief Executive Peter Coleman.

He said the company took more than four years in evaluating the project's options, investing 4.5 million workhours in technical, environmental and commercial studies and surveys.

The soaring cost of development in gas projects is the reason why foreign investors are rethinking their plans in Australia, placing at risk about $100 billion foreign money. Stakeholders said the Australian government and local companies have a window of 18 to 24 months to convince the foreign investors to push through with their plans, but should initiate moves to cut the soaring cost of doing business in the country which is removing the geographical advantage of locating in Australia near the Asian markets.

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