Woodside chairman Michael Chaney says a floating LNG facility is the most likely option for developing the Browse gas basin off the coast of Western Australia.
The company announced on Tuesday it hassigned a deal with Shell that would allow it to use the technology, if the joint venture partners decide to go down that path.
Woodside recently shelved plans for a processing hub at James Price Point, north of Broome.
Mr Chaney told Lateline that while other options will be evaluated, floating technology is the most likely to succeed.
"We are going to evaluate other options but in reality the floating LNG option is likely to be successful," he said.
"The capital cost of the floating LNG option is considerably cheaper.
"Firstly, because you don't have to have a pipeline a very long way to shore, and secondly, because the Shell plan is to design one and build many, so you get a great efficiencies the more of these that you build."