Agreements big step for Woodside bottom line
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.