The gas supplies are expected to help address the gas shortfalls predicted for Australia’s southern and eastern states as early as 2023
Esso Australia, a subsidiary of ExxonMobil Australia, has started delivering gas from the Gippsland Basin Joint Venture’s West Barracouta project to eastern Australia.
The gas deliveries have commenced following the commissioning of the West Barracouta offshore project, which involved an investment of A$400m ($308.7m).
The gas field is located in the VIC/L1 block in the Bass Strait, offshore Victoria, Australia.
The West Barracouta project includes drilling two gas production wells and building associated subsea gas production facilities to access gas in the existing Barracouta field.
The final investment decision on the offshore gas project was made in December 2018.
ExxonMobil Australia chairman Nathan Fay said: “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.”
The gas supplies from the West Barracouta project are expected to help address the potential gas shortfalls predicted for Australia’s southern and eastern states as early as 2023.
The Gippsland Basin is estimated to have the potential to meet one third of south east Australia’s domestic gas demand by the end of the current decade.
On behalf of a 50-50 joint venture with BHP Petroleum (Bass Strait) and Esso Australia Resources, Esso Australia is the operator of the Gippsland Basin joint venture.
Nathan said: “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.”
In October last year, ExxonMobil and Hess took a final investment decision (FID) to move ahead with the $9bn Payara development project, offshore Guyana.