West Australian Premier Mark McGowan says the fallout from coronavirus could affect the timetable for development of the giant Browse gas field off the state's far-north coast.

Key points: The WA Premier says external forces, such as coronavirus, are beyond the State Government's control

The WA Premier says external forces, such as coronavirus, are beyond the State Government's control A final investment decision on the project was expected mid 2021, but Woodside says that's now likely to be late 2021

A final investment decision on the project was expected mid 2021, but Woodside says that's now likely to be late 2021 The Premier hoped Woodside's separate $16.6 billion Scarborough development would get the go-ahead later this year

As the health crisis from the virus increasingly spreads to the economy, Mr McGowan said there was a risk coronavirus could "impact" the timing of Browse, which is Australia's biggest untapped offshore gas resource.

Oil and gas producer Woodside and its joint venture partners want to develop Browse and pipe the gas 900km south to the North West Shelf in a project that would cost $31 billion.

A final investment decision for the project had been expected by mid-next year, but Woodside announced at its full-year results in February it was pushing the date back to late 2021.

Mr McGowan said the State Government was doing everything it could to ensure Browse went ahead, but argued external shocks such as coronavirus or the US-China trade war were beyond its control.

Premier says virus could 'impact' Browse

Despite this, Mr McGowan said he was hopeful Woodside's separate $16.6 billion Scarborough development off the Pilbara coast would be given the go-ahead by the company later this year.

"Of course, you'd like to get these projects up," Mr McGowan said.

"Scarborough is pretty big as well.

"I mean, I think the Scarborough project sometimes gets lost under Browse… but it is a big project.

"We're hopeful of a final investment decision later this year.

"With Browse, it's clearly going to take a little bit more time and I think the coronavirus issues might have actually impacted that.

"But we will continue to work with the companies to get to a resolution."

Coronavirus may have short-term impact on LNG prices

A spokeswoman for Woodside noted the company had delayed the deadline for a final investment decision (FID) on Browse, but said this had little to do with coronavirus.

Woodside boss Peter Coleman said in February that the virus would have short-term effects on business. ( ABC News )

The spokeswoman pointed to Woodside chief executive Peter Coleman's comments in February, when he said the virus had caused temporary difficulties for thrashing out gas sales agreements for Scarborough but was not expected to have lasting effects.

"We were targeting to get at least 50 per cent or more of the [Scarborough] volumes away — contracted by the time we go to FID," Mr Coleman said at the time.

"We still have a line of sight to that, but I would say to you some of that work is being done with customers who may be affected or who are affected by coronavirus.

"So, finalisation of some of that marketing with respect to making it binding is being delayed at the moment through the inability of being able to meet with those buyers."

Wood Mackenzie senior research analyst Daniel Toleman said while coronavirus was likely to have a short-term effect on spot gas prices, the virus was not expected to take a significant toll on the LNG industry.

Mr Toleman said a bigger problem for Woodside was getting commercial "alignment" between the joint venture partners at the North West Shelf, where gas from Browse is supposed to be processed.

He said the six partners, which included Woodside, BHP, Chevron, BP, Shell and Japanese firm MIMI, were still at loggerheads over key issues including the "tolling" charges that would be applied to gas from Browse.

"I don't think the coronavirus is going to have an impact on the partners moving into FEED [front end engineering design] or sanctioning Browse," Mr Toleman said.

"Coronavirus will have a short-term impact on LNG prices and Browse won't start producing hydrocarbons until 2026–27, possibly even later.

"So, I don't think coronavirus is going to have a drastic impact on that project."

Corralling partners a bigger threat than disease

According to Mr Toleman, Woodside's revised deadline of late next year for sanctioning Browse was still too ambitious and he believed a decision would not be reached until at least early 2022.

"I think a little bit of a slip in the schedule doesn't make it harder for the project to go ahead," he said.

"I still see Browse going ahead when those parties get aligned.

"The big challenge, though, is that LNG is very competitive at the moment.

"What we see is a large number of projects taking FID … these are all competitive projects and Browse has to compete with these for capital.

"If it does slip, perhaps then we end up in a position where a sufficient number of projects have been sanctioned and it's more challenging for later projects to get sanctioned."

McGowan vows to remove roadblocks

Mr McGowan acknowledged the Browse partners faced a hard road in getting sign-off for the project but insisted the Government was doing everything it could to make a decision easier.

WA Premier Mark McGowan says external shocks, such as coronavirus or the US-China trade war, were beyond the government's control. ( ABC News: Andrew O'Connor )

"Browse is a bit more complex because there are more joint venture partners and the joint venture partners offshore don't align with the joint venture partners onshore," the Premier said.

"A lot of that requires careful negotiation.

"But what the State Government has done is work to remove any impediments.

"Things we can't control is international issues.

"Whether it's US trade restrictions on China, or whether it's coronavirus, we can't resolve those but we have done everything we can as a state to remove any impediments for an investment decision."