The interconnector pipeline is expected to begin supplies of gas to the Karratha Gas Plant from 2022
The Western Australian government has signed agreements to enable Woodside to feed the Karratha Gas Plant of the North West Shelf (NWS) project with gas from the Pluto fields, transported through an interconnector pipeline.
The agreements follow the signing of a fully-termed gas processing agreement in between Woodside Burrup and the NWS project participants in December 2020.
The project partners agreed to process nearly three million tonnes of LNG and about 24.7 petajoules of domestic gas at the Karratha Gas Plant from 2022 to 2025.
Located 1,260km north of Perth, the Karratha facility is an integrated gas production system that produces LNG, domestic gas, condensate and liquified petroleum gas (LPG).
Woodside and the Western Australian government have also reached an agreement under which the former will market and make available an additional 45.6 petajoules of domestic gas from 2025 from its existing share of gas from the NWS project.
Western Australia Premier Mark McGowan said: “The Pluto Acceleration project helps keep the North West Shelf LNG trains full and clears the way for new LNG export industry development.
“These agreements with Woodside reinforce our domestic gas policy and provide certainty for LNG industry investors and domestic gas consumers.”
Woodside taken FID on interconnector project in 2019
Woodside had taken a final investment decision on the Pluto-NWS interconnector pipeline project in late 2019.
The 5km long steel buried natural gas pipeline will transport gas produced from the Pluto LNG project to the Karratha Gas Plant located on the Burrup Peninsula in the Pilbara region.
The interconnector pipeline project is expected to come online in 2022.
Earlier this month, Woodside has started construction on the additional infrastructure needed at the gas processing plant and also the 30-inch interconnector pipeline.
Construction of the interconnector is expected to generate up to 320 construction roles.
Woodside CEO Peter Coleman said: “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.”
With a 90% stake, Woodside Burrup is the operator of the Pluto LNG project.
Woodside Energy is the operator of the NSW project with a 16.67% stake and is partnered by BHP Billiton Petroleum, BP, Chevron, Japan Australia LNG, and Shell.