OZ NWS to Process Browse, Chevron Gas
The Western Australian North West Shelf (NWS) Joint Venture has signed non-binding preliminary agreements with the Browse Joint Venture and Chevron, the leaseholder of the Clio-Acme fields, for the processing of their respective offshore gas resources through the NWS facilities, Woodside Energy said November 7.
Woodside CEO Peter Coleman said the agreements are a key step toward the realisation of the Burrup Hub concept, which will extend the operating life of the NWS project’s Karratha gas plant for decades beyond 2025.
Woodside is the operator of the NWS project, Browse joint venture and Pluto LNG.
“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 JV will be the anchor tenant underpinning the transition and this new agreement enables the participants to progress towards an early investment decision to develop the gas resource, targeted for 2020, he said.
“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,” he said.
“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,” he said.
The preliminary agreements were executed November 6. The signatories will now continue negotiations to reach binding, fully termed agreements, Woodside said.
Participants in the NWS project along with Woodside (16.67%) are BHP Billiton Petroleum (16.67%) BP Developments Australia (16.67%), Chevron Australia (16.67%), Japan Australia LNG (16.67%) and Shell Australia (16.67%).
Woodside holds a 30.60% interest in the Browse JV along with Shell Australia (27%), BP (17.33%), Japan Australia LNG (14.4%) and PetroChina (10.67%).