MinRes details $850m Lockyer gas project

Mineral Resources’ $850 million proposal to build its Lockyer gas project in the state’s Mid West has taken another step in the planning process, under the state government’s assessment pathway.

MinRes subsidiaries Energy Resources Limited and Westranch Holdings submitted the application to the state government’s Significant Development Assessment Unit pathway late last year.

Details of the project have recently been released, with MinRes’s development application recently been made public for a community feedback period.

The proposed development comprises new gas extraction wells, wells heads, a gas processing facility, and an export pipeline over multiple lots in Mount Horner, Lockier and Mooriary, across the shires of Irwin and Mingenew.

MinRes also proposed to build a permanent operations village in the central processing facility area, according to the development application prepared by Planning Solutions.

A MinRes spokesperson said the site was chosen to minimise impact on surroundings, generally comprising cleared farmland located away from public roads.

“Following a successful exploration program and extensive engagement with local communities, MinRes has submitted a development application for the proposed Lockyer conventional gas project,” the spokesperson said.

“The proposal includes production wells, an infield gathering system, a central processing facility, temporary and permanent accommodation and an underground export pipeline, which will route the processed gas to the Dampier to Bunbury Natural Gas Pipeline.

“As this is a conventional gas project, there will be no impact from unconventional gas activities.”

The central processing facility was designed to produce up to 250 terajoules of gas a day, with up to 1,500 barrels of associated liquids, according to the development application.

However, Business News understands MinRes has yet to make a final investment decision on the proposed gas processing facility.

The project has been valued at $850 million on the SDAU website.

In the development application, MinRes said the Lockyer gas field was discovered in October 2021.

“The proposed facility will supply gas to meet the critical shortfall forecast in the domestic gas market,” its SDAU application reads.

“The proposed development will generate substantial wealth for the state and create hundreds of jobs during conception, construction, and operation.”

The MinRes spokesperson said gas was crucial to the company's transition to reduce diesel dependency for a lower emission, lower cost energy way to power its mine sites across the state.

“The proposal would also increase the supply of gas to the domestic market as WA transitions away from coal power generation,” they said.

“MinRes is exploring the potential for partial export as LNG, subject to revision of the WA domestic gas policy, which will inform the production scale of the plant and a final investment decision.”

MinRes claims the project has undergone significant research and development in the past year, according to its development application.

The company claims up to 250 people will be employed during the construction phase, expected to start around July 2024, with $465 million in net spending in the state estimated over the construction period.

“The project has an operational lifespan of twenty years. The project will employ approximately forty full-time staff with a focus on local labour and skills,” the application reads.

“Net spending over this period is expected to total $26.5 million with $5.8 million spent in the Mid West.

“This excludes the estimated $820 million to be paid in royalties.”

The public advertising period closes on April 18, with the application to be assessed by the SDAU before a final decision by the Western Australian Planning Commission.