BP is selling a 5% stake in the $35 billion Browse LNG project in Australia to South Korea's GS Energy, the UK-based supermajor told Reuters on Monday. The sale reduces BP's total interest from 44% to 39%, with the company describing the move as reflecting its “disciplined approach to portfolio management by bringing in a committed partner.”
The Browse LNG project, proposed and led by Australian energy giant Woodside Energy, involves developing natural gas from the Browse basin and piping it to the North West Shelf (NWS) liquefaction plant for export. Woodside has been pushing to advance the project amid growing global demand for LNG, particularly from Asian buyers.
BP's partial divestment brings in a new partner at the project level, potentially easing capital demands and spreading risk. GS Energy, a South Korean firm, gains exposure to one of Australia's largest untapped gas resources, which is expected to support long-term supply contracts to meet rising energy needs in Asia.
The deal comes as Australian LNG projects face intense competition from newer suppliers in Qatar and the United States, as well as regulatory hurdles tied to environmental approvals. Woodside's ability to secure financing and partners remains critical for the Browse development's final investment decision.
Critics argue that selling stakes to foreign partners does little to accelerate project timelines or address climate concerns surrounding new fossil fuel developments. Environmental groups have warned that the Browse field could become a stranded asset if global energy transition policies tighten, putting long-term returns at risk.