Woodside Burrup Pty Ltd (Woodside Burrup) and the North West Shelf (NWS) Project participants have finalised arrangements with the Western Australian Government enabling the supply of Pluto feed gas, via an interconnector pipeline, for processing at the NWS Project’s Karratha Gas Plant (KGP).

These arrangements follow the execution of a fully termed gas processing agreement in December 2020 between Woodside Burrup and the NWS Project participants to process approximately 3.0 million tonnes of LNG in aggregate and approximately 24.7 petajoules of domestic gas at KGP in the processing period (2022 to 2025).

Woodside has also agreed with the State to market and make available an additional 45.6 petajoules of domestic gas from its existing NWS equity position from 2025.

Woodside CEO Peter Coleman said this milestone builds on Woodside’s long-standing commitment to the Western Australian gas market and provides the energy security required to underpin the development of new industry for the State.

“Connecting the Pluto and NWS facilities accelerates the production of offshore Pluto gas and provides flexible access to emerging LNG processing capacity. The Pluto-KGP Interconnector is the first step in realising our vision for a regional LNG hub on the Burrup Peninsula.

“As the world continues to respond to COVID-19 and volatile market conditions, it is critical that operators and Government work together to grow the gas industry, create local jobs and establish Western Australia as a global LNG hub,” he said.

Mr Coleman thanked Western Australian Premier Mark McGowan and the Department of Jobs, Tourism, Science and Innovation for working constructively with all stakeholders and progressing arrangements in a timely manner.

Construction commenced this month on the additional infrastructure required at KGP and the five-kilometre, 30-inch Pluto-KGP Interconnector. The interconnector pipeline will be constructed along the existing Dampier to Bunbury Natural Gas Pipeline corridor. An average of 250 workers will be employed during the construction phase, with the workforce expected to peak at 320. Start-up of the Pluto-KGP Interconnector is targeted in 2022.

The NWS Project participants are Woodside Energy Ltd (Operator; 16.67%); BHP Billiton Petroleum (North West Shelf) Pty Ltd (16.67%); BP Developments Australia Pty Ltd (16.67%); Chevron Australia Pty Ltd (16.67%); Japan Australia LNG (MIMI) Pty Ltd (16.67%) and Shell Australia Pty Ltd (16.67%).

Woodside Burrup holds a 90% interest in Pluto LNG and operates the Pluto LNG facilities.

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