Western Gas is continuing planning work on a project to produce gas from the Equus field at a near-shore floating LNG facility, with a probable price tag of $US3.5 billion.
Speaking at the Australasian Oil & Gas Conference and Exhibition today, Western Gas executive director Will Barker said petroleum from the field would be piped about 200 kilometres to a floating facility in the Ashburton North industrial zone.
One option for the floating plant would be a barge, although there were other potential alternatives.
The facility would produce about 2 million tonnes per annum, and a final investment decision would be expected in 2020.
First gas is targeted for 2024.
Equus would also contribute to supply in the domestic market.
“It is a very mature asset, it has 2 trillion cubic feet of reserves in ground,” Mr Barker said.
“We’re doing (this) as an integrated small scale upstream to near shore LNG solution.
“We believe this small-scale development of 2mtpa represents … (an economic proposal) that can bring these resources to market.”
He said the company hoped to work with other small resources owners in the area to potential provide a route to market and processing capability.
Western Gas bought Equus from previous proponents Hess Corporation in 2017, nearly a decade after petroleum was first discovered at the prospect in the Carnarvon Basin.
About $1.5 billion of work had been undertaken on the fields, including drilling of 16 exploration wells.
US-based Hess had previously pursued a standalone LNG development and a tolling agreement with the North West Shelf Venture at the Karratha gas plant, but neither was considered economic.
Western Gas picked Baker Hughes, a GE company and McDermott International as master contractors in December, with front-end engineering and design work under way.
