Australia LNG plant in doubt on cost blowout-report

SYDNEY, July 2 (Reuters) - Construction of a liquefied natural gas processing plant in western Australia looks increasingly unlikely due to escalating costs and discord among joint venture partners, The Australian paper reported on Thursday.

The cost of the facility in the environmentally sensitive Kimberley region, which would process gas from Woodside Petroleum's (WPL.AX: Quote, Profile, Research) offshore Browse field, has blown out to A$50 billion ($40.3 billion), the paper said citing an informed source.

Woodside's partners in the project are leaning towards having the gas processed at the existing Woodside-operated North West Shelf plant in Karratha.

"Woodside's partners at Browse are refusing to fall in line with the Perth company's stated preference to build an LNG plant in the Kimberley," the paper said.

Woodside, Australia's second-largest oil and gas producer, in April signed an agreement with the Western Australia state government and traditional landowners in the Kimberley region to allow for construction of the plant.

Browse is 50 percent owned by Woodside. Its partners are BP (BP.L: Quote, Profile, Research), Chevron (CVX.N: Quote, Profile, Research), Shell (RDSa.L: Quote, Profile, Research) and BHP Billiton (BHP.AX: Quote, Profile, Research) (BLT.L: Quote, Profile, Research). ($1=1.240 Australian Dollar) (Reporting by James Thornhill; Editing by Wayne Cole)