"James Price Point is unlikely to make final investment decision in the first half of 2013 because of prohibitively high capex," Mr Greenwood said, adding the joint venture looked likely to spend more time reassessing other options, including plans for more modularised construction at the site.
"While Woodside is focused on James Price Point, a North West Shelf tieback now looks more attractive on our analysis."
Woodside and joint venture partners BHP Billiton, BP, Chevron and Shell have told the federal government they will be ready to make a decision on Browse by the end of the year.
Mr Greenwood says building near Broome has an 11 per cent internal rate of return at his forecast development cost of $45bn, which was unlikely to be acceptable to the partners.
Piping the gas to the North West Shelf would have a 15 per cent rate of