30/07/2008 - 22:00

Apache targets Devil Creek

30/07/2008 - 22:00

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While much of the state's focus has been on the Varanus Island gas crisis, operator Apache Energy is forging ahead with its Devil Creek gas development project, which is open for environmental submissions from the public.

Apache targets Devil Creek

While much of the state's focus has been on the Varanus Island gas crisis, operator Apache Energy is forging ahead with its Devil Creek gas development project, which is open for environmental submissions from the public.

Apache and the Environmental Protection Authority are calling for public submissions to the proposed project, a greenfield gas development located 45 kilometres south-west of Karratha and tied into the $842 million offshore Reindeer gas field development.

The Reindeer gas field was discovered in 1997 and first gas is targeted by the end of 2010.

Gas will be compressed and exported to the Western Australian domestic gas market via the Dampier-Bunbury natural gas pipeline.

The field is expected to provide additional gas supply of at least 100 terajoules per day of gas to the pipeline.

At present, Apache said it had no other alternatives to process gas from the Reindeer field, having already considered sites at Varanus Island, the Burrup Peninsula and the Maitland Industrial Estate.

However, these sites have been rejected during feasibility work due to potential environmental impacts, safety and technical reasons, and potential conflicts with existing users.

The environmental review period coincides with calls for improved energy security following the pipeline rupture at Apache's Varanus gas plant last month.

"The [Devil Creek] gas supply into the [pipeline] will significantly bolster the security of supply and mitigate against supply shortfalls in the event that major gas inputs originating from the Burrup Peninsula were disrupted due to shutdowns arising from scheduled events (including maintenance) or unscheduled events (such as cyclones)," Apache said.

Capital expenditure for the development project is estimated at $900 million.

Meanwhile, Treasurer Wayne Swan said this week he had a "productive" meeting with Woodside Petroleum over concerns it has for investments worth $60 billion in liquefied natural gas production.

The oil and gas producer has said the government's model for a carbon emissions trading system threatens offshore LNG projects.

Mr Swan said he had met with Mr Voelte and others in the energy sector during the past couple of weeks.

He told Mr Voelte the government was determined to introduce the scheme in a sensible and measured way.



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