NWS LNG participants have executed fully-termed gas processing agreements (GPAs) for processing third-party gas through their LNG plant in Karratha.
Woodside announced that the NWS LNG participants have executed fully-termed gas processing agreements (GPAs) for processing third-party gas through their LNG plant in Karratha. The agreements signed with Woodside Burrup in respect of gas from the Pluto fields, and with Mitsui & Co and Beach Energy, in respect of the Waitsia gas project’s stage 2.
“Execution of the GPAs is a key milestone in the transformation of the Karratha Gas Plant (KGP) into a third-party gas tolling facility and secures gas to fill emerging processing capacity; [however] both GPAs are subject to conditions precedent including relevant government and regulatory approvals.”
The GPA with Woodside Burrup is to process approximately 3.0 MMT of LNG in aggregate and approximately 24.7 PJ of domestic gas at KGP in the period 2022-2025. The gas will be sourced from the offshore Pluto fields and transported to the NWS LNG facilities through the Pluto-KGP Interconnector, which is targeted to be ready for start-up in 2022.
The GPA with Mitsui and Beach is to provide gas processing services for gas from the onshore Waitsia gas project stage 2 for an aggregate of approximately 7.5 MMT of LNG in the period between 2023-H2 and the end of 2028.
In support of the GPAs, the NWS LNG participants have also taken a final investment decision for the infrastructure required to receive gas from the Pluto-KGP Interconnector and the Burrup Extension Pipeline (which will be utilised for Waitsia gas). Construction is targeted to commence in Q1 2021.
Shareholders of the NWS LNG are Woodside Energy Ltd (Operator; 16.67%); BHP Billiton Petroleum (North West Shelf) Pty Ltd (16.67%); BP Developments Australia Pty Ltd (16.67%); Chevron Australia Pty Ltd (16.67%); Japan Australia LNG (MIMI) Pty Ltd (16.67%) and Shell Australia Pty Ltd (16.67%), according to the
Global LNG Database®.
Related Development:
On 29 Dec. 2020, BP confirmed that its Ironbark-1 well off the Pilbara coast has come up dry, dashing hopes it could provide gas to the emptying North West Shelf LNG plant, and crashing partner's share prices.
BP owns 42.5% of the WA-359-P permit it operates where Ironbark-1 is located. Cue Energy Resources owns 21.5%; Beach Energy 21% and New Zealand Oil and Gas (NZOG) 15%.
Cue had estimated that up to 15 TCF of gas could be found on Ironbark prospect which is close to the Woodside-operated North Rankin platform that would have made getting Ironbark gas to the North West Shelf LNG plant relatively easy.
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