Esso Australia delivers new Bass Strait gas to meet eastern demand
Esso Australia has said that one of the largest new gas projects this decade from the Bass Strait project is now delivering gas to Eastern Australia.
A fresh supply of gas from Bass Strait is flowing into the Australian domestic gas market in time for winter this year and is expected to help curb gas shortfalls in the southern and eastern states that were predicted to hit from 2023.
ExxonMobil subsidiary Esso Australia will announce on Tuesday one of the largest new gas projects this decade, West Barracouta, is now delivering gas to eastern Australia.
“West Barracouta will likely be the largest domestic gas project for eastern Australia that comes along this decade, building on our long and proud history of reliably supplying gas used in Australian homes and businesses for more than 50 years,” ExxonMobil Australia chairman Nathan Fay said.
Esso Australia operates the 50/50 Gippsland Basin joint venture between it and BHP. Barracouta was the first offshore field ever discovered in Australia and the joint venture has been the largest supplier of gas to the eastern Australian market for over 50 years.
West Barracouta remained one of the largest proven undeveloped gas fields off southeastern Australia.
“The Gippsland Basin remains today the largest single source of gas supply to the east coast domestic market. And West Barracouta demonstrates it still has the capacity to bring material new gas supply to the market – there is still plenty of potential left in the Bass Strait” Mr Fay said.
Underpinned by a $400m investment, work progressed through 2020 despite the challenges of COVID-19, with the new project now tied back to the existing Barracouta infrastructure in the Bass Strait.
News of the fresh supply comes as concerns have been growing over a potential gas shortfall within two years.
In his March Australian LNG monthly update, EnergyQuest CEO Graeme Bethune remarked: “Thankfully it appears that work has started on the Port Kembla Gas Import Terminal in NSW.
“This is essential for the Victorian winter 2023.
“However, the Victorian decision to reject Crib Point and, by default, rely on NSW will add around $1/GJ to Victorian gas prices due to additional pipeline transmission costs.”
Since drilling the first Bass Strait well in 1965, the Gippsland Basin joint venture has delivered more than 4 billion barrels of oil and 10 trillion cubic feet of natural gas to Australia, more than half of all the oil ever produced in Australia.
Esso Australia expects that by the end of the decade that Gippsland Basin will continue to have the potential to supply one third of southeast Australia’s gas demand.
