Armour starts commercial gas sales from Kincora plant
Armour Energy said that the commercial sales of gas have kicked off from the Kincora project.
Commenting on this significant achievement for the company, CEO Roger Cressey, said this is a major milestone for the company as it progresses towards becoming a “significant oil and gas producer in the Roma region.”
“The Armour team and its contractors are proud to have restarted production from this long-established gas province, particularly at a time when the Australian eastern seaboard gas market is facing an acute supply shortfall,” Cressey said.
As recently advised, re‐commissioning of the dry gas circuit of the Kincora gas plant was an important first step toward the commencement of gas sales. With the Kincora to Wallumbilla pipeline and the new end of line facility at Wallumbilla now also operational, it has been possible to deliver gas to market.
From next week gas sales are targeted at 5 TJ/day, with gas being sold under the company’s gas sales agreement with Australia Pacific LNG, Armour Energy said.
Gas is presently being produced from the Newstead gas storage facility, processed and compressed at Kincora, then delivered to market through the downstream pipeline facilities. The Newstead storage facility currently holds approximately 2.3 PJ of treated gas that currently requires only minimal re‐processing (dehydration) to ensure compliance with the sales gas specification.
The next stage of Phase 1 of the Kincora restart project will involve ramp‐up of gas production from existing wells which are currently shut‐in. This gas will be treated by the wet gas circuit at the Kincora gas plant. Restart work on the wet gas circuit is underway and is expected to be completed by December 2017.
Once the commissioning of the wet gas circuit at Kincora and the balance of field infrastructure is completed, the Company plans to increase gas production to 9 TJ/day.
As previously reported, Phase 2 of the restart project will involve drilling of new wells plus workovers and stimulations of existing wells. This, together with any necessary further work on the Kincora gas plant, will allow gas production to be ramped up to 20 TJ/day over the next 12 to 18 months.