BHP starts up Macedon gas project in Western Australia

BHP Billiton reported the start up of the $1.5 billion Macedon natural gas project, which will supply 20% of Western Australia’s domestic gas for the next 20 years.

Gas flow started last month from Macedon gas field on production lease WA-42-L in the Exmouth subbasin, about 100 km west of Onslow, offshore Western Australia. BHP, which operates Macedon, will develop an estimated 400-750 bcf of gas in Western Australia’s Pilbara region (OGJ Online, Dec. 9, 2010).

Macedon will initially have four subsea completed wells producing wet gas to the pipeline that will transport the gas to the onshore gas plant, which has a production capacity of as much as 200 TJ/day of gas.

In July 2011 the partners let a contract to the Australian subsidiary of McDermott International Inc. for the subsea installation of umbilicals, risers, and flowlines (OGJ Online, July 8, 2011).

BHP holds 71.43% interest in Macedon; Apache Corp. holds the remainder.

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