Agree­ments big step for Wood­side bot­tom line

Kalgoorlie Miner - - MINETALK - Peter Milne

Wood­side’s growth plans have taken a step for­ward with the North West Shelf joint ven­ture reach­ing pre­lim­i­nary agree­ments to process LNG for the Wood­sideled Browse project and Chevron’s Clio-Acme field.

The non-bind­ing agree­ments are a step to­wards keep­ing the five LNG trains of the NWS Kar­ratha gas plant op­er­at­ing at full ca­pac­ity as gas sup­ply from the NWS joint ven­ture’s own fields de­clines early next decade.

Wood­side chief ex­ec­u­tive Peter Cole­man said the agree­ments were part of his com­pany’s Bur­rup Hub con­cept, which would ex­tend the op­er­at­ing life of the Kar­ratha plant for decades to come.

“Cen­tral to our vi­sion for the Bur­rup Hub is the tran­si­tion of the Kar­ratha gas plant into a third­party tolling fa­cil­ity,” he said.

“The Browse joint ven­ture 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.”

Chevron an­nounced in Septem­ber it wanted to de­velop Clio-Acme us­ing other com­pa­nies’ in­fra­struc­ture. Gas from Clio-Acme is planned to be piped to Wood­side’s Pluto off­shore plat­form and then mixed with Pluto gas and piped to the Bur­rup Penin­sula.

It would un­dergo pre­lim­i­nary treat­ment at the Pluto LNG plant and then be sent to the nearby Kar­ratha gas plant for liq­ue­fac­tion and ex­port.

The pipe­line con­nect­ing the neigh­bour­ing Pluto and NWS LNG plant is yet to be built. Chevron Aus­tralia man­ag­ing di­rec­tor Nigel Hearne said Browse and ClioAcme were im­por­tant to trans­form the NWS into a com­pet­i­tive and prof­itable tolling fa­cil­ity.

“This would rep­re­sent a com­pelling demon­stra­tion of a truly in­ter­con­nected basin,” he said.

Wood­side said in a state­ment that ne­go­ti­a­tions would con­tinue to reach bind­ing, fully termed agree­ments.

Chevron wholly owns the ClioAcme field.

Wood­side op­er­ates the Browse, Pluto and NWS joint ven­tures.

The Wood­side Petroleum-op­er­ated North West Shelf Ven­ture's Kar­ratha gas plant.

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