NWS partners execute third-party gas deals
The Woodside-led North West Shelf (NWS) project has executed fully-termed gas processing agreements (GPAs) for processing third-party gas.
The deals have been executed with Woodside Burrup, in respect of gas from the Pluto fields, and with units of Mitsui & Co. and Beach Energy, in respect of the Waitsia Gas Project 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.
The GPA with Woodside Burrup is to process approximately 3.0 million tonnes of LNG in aggregate and approximately 24.7 petajoules 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 project 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 million tonnes of LNG in the period between the second half of 2023 and the end of 2028.
In support of the GPAs, the NWS project 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 utilized for Waitsia gas). Construction is targeted to commence in the first quarter of 2021.
Woodside CEO Peter Coleman said the transformation of KGP into a third-party tolling facility would create new opportunities for Western Australia’s gas industry.
“It will provide new revenue and LNG exports from the NWS Project, add to Western Australia’s domestic gas supplies from Pluto and help underpin Australia’s economic recovery,” he said.
The NWS project participants are Woodside Energy, (Operator; 16.67 per cent), BHP Billiton Petroleum (16.67 per cent), BP Developments Australia (16.67 per cent), Chevron Australia (16.67 per cent), Japan Australia LNG (16.67 per cent) and Shell Australia (16.67 per cent).
Woodside Burrup holds a 90 per cent interest in Pluto LNG and operates the Pluto LNG facilities