BP reduces its stake in Browse LNG Australia to 39.33% after selling 5% to South Korea’s GS Energy. The Australian project, valued at US$34.96 billion, is still awaiting its FID.
Browse LNG Australia: a new phase for the project
British oil major BP agreed to sell 5% of its stake in the Browse LNG Australia project, located in Western Australia, to South Korea’s GS Energy, both companies confirmed on Monday. The transaction reduces BP’s interest in Browse LNG Australia from 44.33% to 39.33% in the Woodside Energy (WDS.AX)-led project, whose estimated cost totals A$48.7 billion (US$34.96 billion). The sale price was not disclosed.
Browse LNG Australia is the country’s largest undeveloped gas resource, with 2P reserves of 15,879 petajoules in the Browse Basin off the nation’s northwest coast. The project—designed to supply gas to the North West Shelf plant—has faced years of delays due to regulatory and commercial hurdles, including environmental approvals linked to its carbon capture and storage (CCS) component. In May 2026, the Australian government received the environment department’s final recommendation on the Browse LNG Australia project. Browse has not yet reached a final investment decision (FID).
BP became the project’s largest individual shareholder after acquiring Shell’s 27% stake in Browse in 2023, raising its interest to 44%. The company’s current leadership is headed by Meg O’Neill, a former Woodside executive. In parallel with this portfolio optimization process, BP has restructured its organizational structure with a focus on oil and refining.
The company has also advanced other strategic upstream assets, such as the offshore Thunder Horse field alongside ExxonMobil and the gas discovery in Egypt, reaffirming its commitment to high-return assets.
“This sale illustrates BP’s strategic approach to managing its portfolio by bringing in a dedicated partner,” the company said. “BP and its partners continue to see long-term value in the Browse LNG Australia project,” it added.
Analyst Saul Kavonic of MST described the deal as “a constructive sign of incremental progress” for Browse LNG Australia. GS Energy is seen as a player likely to support Woodside’s plans and become a customer for the LNG produced.
South Korea imports nearly 20% of its LNG from Western Australia, and GS Energy is seeking to secure long-term supply. In the region’s energy context, the recovery in production at the Geelong refinery illustrates the sector’s dynamism in the South Pacific.
The transaction is subject to obtaining regulatory and consortium approvals. The other partners in the Browse LNG Australia consortium are Woodside, PetroChina, Shell, and MIMI (a joint venture between Mitsui and Mitsubishi).
Strategic impact for liquefied natural gas in Australia
GS Energy’s entry into the Browse LNG Australia project represents a decisive step toward consolidating the consortium and potentially reaching a final investment decision (FID). Designed to produce approximately 12 million tonnes per year (MTPA) of liquefied natural gas, the project is considered one of the world’s largest undeveloped LNG projects. Its final approval could transform Western Australia’s energy landscape and strengthen trade ties between Australia and Asian markets, particularly South Korea and Japan.
Bringing in a strategic buyer such as GS Energy significantly improves the commercial outlook for the Browse LNG Australia project. Industry analysts believe this BP sale could be the catalyst Woodside Energy needs to drive decision-making on the project, bringing Australian LNG closer to Asia-Pacific markets over the next decade.
Sources: Reuters | Offshore Engineer
