PERTH (miningweekly.com) – ASX-listed Woodside and the North West Shelf (NWS) partners have struck a non-binding agreement with fellow-listed Western Gas to potentially process some two-million to three-million tonnes a year of gas from the Equus gas project, from 2027, using Woodside-operated infrastructure.
The separate agreements outline the key terms and process for undertaking joint technical studies and negotiations to finalise fully termed agreements.
Woodside Energy CEO Meg O’Neill said on Tuesday that by leveraging existing infrastructure, Woodside would enable Western Gas to access a competitive option to supply Asian liquefied natural gas (LNG) markets while providing additional domestic gas security for Western Australia.
“This is an important step in maximising utilisation of our existing infrastructure to deliver domestic gas and LNG to local and global customers and value for our shareholders and community. The proposed gas processing opportunity with Western Gas for the Equus offshore resource demonstrates the flexibility provided by the Pluto-Karratha gas plant (KGP) Interconnector, which commenced operations in March 2022, to optimise available capacity at our world-class facilities.”
It is proposed that Equus gas would be produced on a floating production storage and offloading facility and transported through an approximately 200-km pipeline to the Pluto LNG facility. It is proposed that prior to capacity being available in Pluto Train 1 the Equus gas be transported via the Pluto-KGP Interconnector for processing and export at the KGP with processing and export via Pluto Train 1 to commence once processing capacity becomes available.
First LNG for the gas processing opportunity is targeted in 2027, with a target aggregate production of 2-3Mtpa of LNG and 50 TJ/d to 75 TJ/d of domestic gas.
The NWS project participants include Woodside, which is also the operator, BP Developments Australia, Chevron Australia, Japan Australia LNG and Shell Australia. The Pluto LNG project participants are Woodside, Kansai Electric Power Australia, and Tokyo Gas Pluto.