Oz NWS Partners Ink Gas Processing Deals
The North West Shelf (NWS) project participants have signed preliminary deals for processing third-party gas through the NWS facilities with Woodside, in respect of gas from the Pluto fields, and with Mitsui and Beach Energy, in respect of the Waitsia gas project stage 2, Woodside said on August 17.
“These agreements advance the NWS project’s plans to toll third-party gas at the Karratha gas plant (KGP) as anticipated processing capacity becomes available this decade,” Woodside said. “Gas produced from the offshore Pluto fields is planned to be transported to the NWS project facilities through the proposed Pluto-KGP interconnector, which is targeting ready for start-up in 2022.”
The agreement with Mitsui E&P Australia and Beach Energy contemplates the tolling of gas related to the onshore Waitsia gas project stage 2 from 2023. The NWS project participants will work with each proponent during the second half of 2020 to agree fully termed binding gas processing and other agreements to support the respective projects, Woodside added.
Woodside CEO Peter Coleman said the agreements were another significant step in enabling the processing of other resource owners’ gas at KGP, unlocking further value from the facility.
“The processing of third-party gas resources will extend the operating life of the NWS project and ensure KGP continues its significant contribution to the Australian and Western Australian economies for years into the future,” Coleman said. “The tolling of third-party gas at KGP provides new revenue and LNG exports, and an additional domestic gas commitment for Western Australia from Pluto.”
Woodside had planned to process gas from its huge Browse field but the final investment decision on the $20bn project has been deferred to an unspecified date.
NWS LNG has been exporting gas for three decades from offshore fields. Its partners, which include Woodside, Chevron, Shell, BP and BHP Billiton, have invested $34bn in the plant to date. It produces just under 12mn mt/yr of LNG.