Australian LNG developer Woodside Energy has blocked an attempt by Japan’s Inpex to purchase PetroChina’s stake in the Browse LNG project, Reuters reported on June 11.

Woodside exercised its pre-emptive right to buy PetroChina’s 10.67% stake in the project, thereby shutting Inpex out of obtaining a foothold in the Browse gas fields located off Western Australia’s coast.

Under the terms of the deal, Woodside will purchase PetroChina’s stake for $225 mn, in addition to reimbursement of cash call contributions since June 30, 2025.

The acquisition also includes a contingent payment of $175 mn if a final investment decision (FID) is taken by the Browse joint venture on the development of the Torosa, Brecknock, and Calliance gas fields by June 30, 2032. With the acquisition, Woodside’s stake in the project will rise to 41.27%.

In late May, Inpex agreed to buy PetroChina’s stake in one of Australia’s largest undeveloped gas fields, which is located 425 km offshore. The project remains undeveloped amid repeated development delays, cost concerns and environmental opposition that have prevented development for over a decade.

With the acquisition, Woodside is expected to pipe gas from Browse through subsea infrastructue to its North West Shelf LNG plant located at Karratha.

The deal alleviates concerns for Woodside about Inpex’s gas pipeline from the Browse region to its Ichthys LNG facility in Darwin, which could have been seen as a better option.

Browse is believed to possess around 13.9 trn cubic feet (396 bn cubic metres) of gas and 390 mn barrels of condensate.

The Browse joint venture also includes Mitsubishi and Mitsui, as well as BP, however BP has agreed to sell part of its stake to South Korea’s GS.

Inpex’s interest in the Browse LNG project comes as Japan seeks to both ramp up and diversify its LNG suppliers to protect itself from external shocks to the LNG market and price spikes.