Woodside strikes Western Gas agreement
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Woodside Energy and North West Shelf project participants have entered into agreements with Western Gas to process up to three million tonnes of gas per annum from Western Gas' Equus project using Woodside infrastructure.
Woodside's Burrup subsidiary and the North West Shelf project, comprising Woodside, BP, Chevron, Japan Australia LNG and Shell, entered into separate non-binding agreements with Western Gas today.
The agreements outline key terms and processes for undertaking joint technical studies and negotiating and finalising fully termed agreements to process between 2 Mtpa and 3 Mtpa of Equus gas from 2027.
The gas would be processed using Woodside-operated infrastructure.
Woodside Energy chief executive Meg O'Neill said using existing infrastructure would enable Western Gas to access a competitive option to supply Asian LNG markets.
She also said it would also provide additional domestic gas security for Western Australia.
“This is an important step in maximising utilisation of our existing infrastructure to deliver domestic gas and LNG to local and global customers and value for our shareholders and community,” Ms O'Neill said.
“The proposed gas processing opportunity with Western Gas for the Equus offshore resource demonstrates the flexibility provided by the Pluto-KGP Interconnector, which commenced operations in March 2022, to optimise available capacity at our world-class facilities.”
The Equus gas is proposed to be produced on a floating production storage and offloading facility and transported through a 200km pipeline to the Pluto LNG facility, according to Woodside Energy.
The gas would be transported by the Pluto-KGP Interconnector for processing and export at the Karratha Gas Plant prior to capacity being available in the Pluto Train 1.
Processing and export by Pluto Train 1 is set to commence once processing capacity becomes available.
The first LNG for the gas processing opportunity is targeted in 2027 with a collective production of two to three Mtpa of LNG and 50 to 75 terajules per day of domestic gas.