Australia's Cooper Takes Sole Project FID

Australian Cooper Energy will now move ahead with the Sole gas project and the company has commenced the process of finalising the finance with a fully underwritten equity raising of approximately A$151mn. The board approved the Sole gas project as ready to proceed, Cooper said March 29.   

A month ago the company said it planned to take the final investment decision this month.

The project will develop the Sole gas field located in VIC/ L32 in the Gippsland basin offshore Victoria to supply 25 PJ (0.67bn m³) annually to gas users in south-east Australia.  Cooper Energy is the 100% interest holder in the gas field.

Location of the Sole gas project offshore Victoria (Map credit: Cooper Energy)

Gas produced from the field will be piped to the Orbost gas plant, from where the gas will be supplied to customers through the Eastern Gas Pipeline.  Cooper Energy has secured long term gas sales contracts with a portfolio of customers including AGL, EnergyAustralia, Alinta Energy and O-I Australia. It will also retain a significant share of annual output for availability to supply shorter term sales.

APA Group, Australia’s biggest gas infrastructure business, is expected to acquire and undertake all capital expenditure associated with the Orbost gas plant.  Cooper Energy will solely undertake the upstream development, which has an expected capital cost of A$355mn.  The fully underwritten equity raising of approximately A$151 million will substantially cover the expected equity funding requirement for the Sole gas project, the company said.

First gas from the Sole gas project is planned to be delivered to the Orbost gas plant in early 2019. 

Shardul Sharma