The offshore gas project in Australia can supply 350TJ/d of gas for more than 15 years
Western Gas and APA Group have partnered to assess the feasibility of supplying gas from the former’s Equus Gas Project to Western Australia and the East Coast through a transcontinental pipeline.
The Equus Gas Project is a development-ready offshore project in the Carnarvon Basin, Australia. It is slated to produce first gas in 2024.
The companies have signed a memorandum of understanding (MOU) to carry out a joint development and marketing study to supply gas from the offshore project at competitive prices to the two Australian regions.
Under the study, the companies will take up a detailed assessment of development, commercial, marketing, and regulatory factors, which will provide the foundation for an integrated bankable feasibility study.
Located nearly 200km northwest off the coast of Onslow in Western Australia, the gas project aims to develop two trillion cubic feet (Tcf) of gas and 42 million barrels of oil (MMbbl) of condensate.
According to Western Gas, the Equus Gas Project can supply 350 terajoules per day (TJ/d) of gas for over 15 years. The capacity is equivalent to meeting 35% of the gas demand in Western Australia, and nearly 35% of the combined gas requirements of New South Wales (NSW) and Victoria.
Western Gas executive director Andrew Leibovitch said: “This collaboration brings together our independently owned proven gas resource with APA’s long-standing expertise in pipeline construction and operation and its strong relationships with domestic customers and retailers.
“Expectations are that gas supply will tighten in East and West Coast markets from the mid-2020s in the absence of the development of new gas fields. Equus has the opportunity to meet those market needs, as well as create new gas supply opportunities independent of LNG focused developments.”
The Equus Gas Project comprises 11 gas and condensate fields.
Western Gas will look to develop the fields through a 210km long subsea pipeline to the Ashburton North Strategic Industrial Area (ANSIA).
The company said that the offshore pipeline can help in enabling the development of other stranded gas resources. This will generate opportunities for more supply of gas into domestic markets and new gas-related developments, said Western Gas.
On the other hand, the East Coast of the country will be supplied with the gas through an onshore transcontinental pipeline.