BHP Billiton has approved the development of the $US1.5 billion ($A1.57 billion) Macedon gas field off the coast of Exmouth in Western Australia.
BHP Billiton has approved the development of the $US1.5 billion ($A1.57 billion) Macedon gas field off the coast of Exmouth in Western Australia.
BHP says it expects first production from its Macedon gas development, a joint venture with Apache Northwest, in 2013.
Recoverable reserves are estimated at between 400 and 750 billion cubic feet of gas from the project.
The Macedon project involves four offshore production wells supplying a wet gas pipeline to an onshore gas treatment plant to be constructed at Ashburton North, 17 km south-west of Onslow.
BHP says a sales gas pipeline will be connected to the Dampier to Bunbury Natural Gas Pipeline for sale to the domestic gas market in WA.
"Macedon will be a valuable asset for our company and will improve the security for domestic gas supplies in both the short and medium term for Western Australia," BHP Petroleum chief executive J Michael Yeager said on Friday.
"It will be the first development in the important Ashburton North area and will make a strong contribution to the overall growth of our Petroleum operations in WA."
BHP will provide 71.43 per cent of the project cost, or $US1.05 billion, with the balance funded by joint venture partner Apache Northwest.
The company also said on Friday that it had cleared the first US regulatory hurdle in its bid for Canadian company Potash Corporation of Saskatchewan Inc.
BHP says the US Federal Trade Commission and the Antitrust Division of the Department of Justice have granted early termination of the mandatory waiting period.
"The termination is effective immediately, thereby ending the HSR waiting period for the proposed acquisition," the company said in a statement on Friday.
"Accordingly, the condition under the Offer for the expiration or
termination of any waiting period under the HSR Act has been satisfied."
BHP says it remains confident its offer will receive US foreign investment approval and subsequently competition and foreign investment approval from Canada.
BHP has offered to purchase all outstanding PotashCorp common shares at a price of US$130 in cash per share.
Apache co-chief operating officer and president, international Rodney Eichler said: "By introducing a new source of gas and a new processing hub, the Macedon development will provide much-needed gas to meet rising demand and increase the diversity of supply for Western Australia's growing resource-based economy."
Apache is also a foundation partner in the Chevron-operated Wheatstone LNG hub, which will provide gas from the company's Julimar and Brunello discoveries for export to Asian markets.
A final investment decision on the first phase of the Wheatstone project is slated for 2011, after completion of front-end engineering and design.
