PERTH (miningweekly.com) – The partners in the North West Shelf joint venture (JV), in Western Australia, have reached non-binding preliminary agreements with the Browse JV and US energy major Chevron for the processing of offshore gas resources through the North West Shelf facilities.
Woodside is the operator of the North West Shelf project, as well as the Browse JV.
Woodside CEO Peter Coleman told shareholders this week that the preliminary agreements were a key step towards the realisation of the Burrup Hub concept, which would extend the operating life of the North West Shelf project’s Karratha gas plant for decades beyond 2025.
The Burrup Hub involves development of some 20-trillion to 25-trillion cubic feet of gross dry gas resources from the Browse, Pluto and Scarborough gasfields, based on current reserves, processed through proven existing liquefied natural gas (LNG) facilities, such as Pluto LNG, and the North West Shelf project.
“Central to our vision for the Burrup Hub is the transition of the Karratha gas plant into a third-party pay tolling facility as the North West Shelf JV fields reach the end of their lives,” Coleman said.
“The Browse JV will be the anchor tenant underpinning that transition and this preliminary agreement enables the participants to progress towards an earlier final investment decision to develop the gas resource, targeted for 2020.”
Coleman noted that gas from Chevron’s Clio-Acme gasfields was planned to be brought to the Burrup Hub through the Woodside-operated Pluto offshore infrastructure and then transported through the proposed Pluto-North West Shelf interconnector pipeline to be processed at the Karratha gas plant.
“The Burrup Hub will unlock the future value of the North West Shelf and Pluto infrastructure by ensuring these world-class assets continue providing returns to the nation, state and local communities, and the participant’s shareholders for many years to come,” he added.