Under the onshore Waitsia Stage 2 development project in Western Australia, a new 250TJ/day gas processing plant will be constructed, which will be fed with gas produced from up to eight production wells, phased over a life cycle of 15 years
Beach Energy reaches agreement with Webuild to complete delivery of the Waitsia Stage 2 gas project. (Credit: Anita starzycka from Pixabay)
Australian oil and gas company Beach Energy has reached an agreement with Italy-based construction company Webuild to complete the Waitsia Stage 2 gas project located in the Perth Basin, Western Australia.
The agreement is subject to finalisation of the Clough administration. Clough is the technological solution provider for processing the gas as part of an engineering, procurement, and construction (EPC) contract for the onshore gas field development project.
Beach Energy said that it has revised the overall capital expenditure estimate of the Waitsia Stage 2 gas project, net to the company, to A$400m ($277.5m)–A$450m ($312.2m). This was after Webuild’s due diligence and review of cost and work schedules, said the Australian firm.
Previously, the capital expenditure share for Beach Energy was estimated to be A$350m ($242.8m)–A$400m ($277.5m).
The Australian oil and gas company, which is part of the Waitsia joint venture (JV), and Webuild expect to produce the first gas from the Waitsia gas plant by the end of this year.
Mitsui E&P Australia is Beach Energy’s JV partner in the onshore gas field development project.
Under the Waitsia Stage 2 development project, a new 250 terajoule (TJ)/day gas processing plant is being constructed. The plant will be fed with gas produced from up to eight production wells phased over a life cycle of 15 years.
The gas will be transported via the nearby Dampier to Bunbury natural gas pipeline.
Beach Energy CEO Morné Engelbrecht said: “This marks an important step towards completion of the Waitsia Stage 2 project and is a key milestone in providing renewed momentum, stability and continuity to the project.
“The dedication and commitment of the project team has been second to none and will ensure the Waitsia Gas Plant becomes an important piece of energy infrastructure for Western Australia for many years to come.
“We look forward to working with Webuild and Mitsui to complete the project and commencing supply of LNG while we continue to meet our domestic gas commitments with first gas targeted by the end of 2023.”