First Gas Flows from Macedon Field in Australia

First Gas Flows from Macedon Field Offshore W. Australia

BHP Billiton’s US$1.5 billion Macedon domestic gas project in Onslow, Western Australia, was officially opened today by the Honourable Colin Barnett, Premier of Western Australia.

First gas commenced on target in August 2013 at the BHP Billiton-operated facility which commercialises natural gas from offshore production lease WA-42-L located in the Exmouth Sub-Basin.

BHP Billiton Asset President Conventional, Steve Pastor, said the success of the project reflected a deep commitment to environmental protection, economic development and community engagement.

“BHP Billiton is playing an important role in securing a diverse and reliable energy supply for Western Australia. 

“Macedon is BHP Billiton’s largest operated Australian domestic gas project and is expected to supply domestic gas for the wholesale market in Western Australia until at least 2033. The operation will supply 20 per cent of the State’s daily domestic gas supply for consumers and industry.

“For BHP Billiton, this facility builds on our strong oil and gas operations in Western Australia, which includes interests in the North West Shelf and the Exmouth Sub-Basin,” he said.

The plant has a production capacity of up to 200 terrajoules of gas per day. The operations include four offshore production wells and an onshore gas treatment plant at the Ashburton North Strategic Industrial Area 17 kilometres south west of Onslow.

Gas from the Macedon plant will be exported to the Dampier to Bunbury Natural Gas Pipeline for sale into the Western Australian market. During construction, more than 600 employees and contractors worked on the project

including Indigenous Australians who made up 10 per cent of the workforce. Local businesses also benefited from the project with US$865 million, nearly 60 per cent of the total project spend, invested locally.

During the productive life of the asset, BHP Billiton will be investing in the future growth of the area through BHP Billiton’s State Development Agreement, a community engagement initiative to promote the health and wellbeing of our neighbours.

Macedon is a joint venture between BHP Billiton (71.43%) and Apache Northwest (28.57%).

Press Release, September 20, 2013