NWS strikes LNG deal with Browse JV, Chevron

The Woodside-operated North West Shelf Venture has struck a preliminary deal to process LNG for the Browse project and Chevron’s Clio-Acme gas fields.

The non-binding preliminary agreements, which were signed yesterday in Perth, are a key step towards extending the operating life of the NWS venture’s Karratha gas plant beyond 2025.

Woodside Petroleum is the operator the of the NWS and holds a 16.7 per cent stake in the joint venture, with Chevorn owning an equal one-sixth share.  

Woodside has a 30.6 per cent interest in the Browse JV, with Shell (27 per cent), BP (17.33 per cent), Mitsubishi and Mitsui (14.4 per cent) and PetroChina International Investment (10.67 per cent) holding the remaining interest. 

Woodside chief executive Peter Coleman said the agreements formed a part of the Burrup Hub concept.

“Central to our vision for the Burrup Hub is the transition of the Karratha gas plant into a third-party tolling facility as the NWS Joint Venture fields reach the end of their lives,” he said.

“The Browse Joint Venture will be the anchor tenant underpinning that transition and this preliminary agreement enables the participants to progress toward an earlier final investment decision to develop the gas resource, targeted for 2020.

“Gas from Clio-Acme is planned to be brought to the Burrup Hub through the Woodside-operated Pluto offshore infrastructure and then transported via the proposed Pluto-NWS Interconnector pipeline to be processed at the Karratha gas plant.

“The Burrup Hub will unlock the future value of the NWS and Pluto infrastructure by ensuring these world-class assets continue providing returns to the nation, state and local communities, and the participants’ shareholders, for many years to come.”

Chevron Australia managing director Nigel Hearne, who has previously advocated the shared use of infrastructure, welcomed the agreements.

"This is an important step towards the proposed development of Browse and Clio-Acme which are important enablers in transforming the North West Shelf into a competitive and profitable tolling facility," Mr Hearne said.

"This would represent a compelling demonstration of a truly interconnected basin.

"Continued close industry collaboration will develop Australia’s gas resources more efficiently and keep our world-class built infrastructure fully utilised." 

Meanwhile, Perth-based Neptune Geomatics has been awarded a survey contract for the proposed Browse to North West Shelf development by Woodside.

The survey will see the acquisition of data along 900km of seabed, off the Western Australian coast.

The survey will commence in October 2018 with the acquisition of multibeam echo sounder reconnaissance data.

The second phase will incorporate Autonomous Underwater Vehicles (AUV) followed by the acquisition of geotechnical (using Cone Penetration Testing) and environmental data.

Neptune chief executive Robin King said the contract extended the company’s extensive track record in providing survey services and continued its relationship with Woodside following the Lambert Deep and Greater Enfield geophysical campaigns.

“Furthermore, Neptune has been highly committed to developing our AUV service offering,” he added.

Neptune Geomatics is owned by ASX-listed company Neptune Marine Services.