The Mitsui E&P Australia-operated Waitsia gas field joint venture in the onshore North Perth basin of Western Australia has reached a final investment decision (FID) for the $700-800 million (Aus.) Stage 2 development program.
The JV, a 50-50 partnership between Mitsui and Beach Energy Ltd., Adelaide, has executed and entered into commercial and Western Australian State Government agreements, including:
- A domestic gas commitment agreement and project development deed with the government,
- A gas processing agreement, tie-in agreement, product allocation agreement and lifting and offtake agreements with the Woodside Petroleum-operated North West Shelf Project participants, and
- A gas transportation agreement with AGIG, owner and operator of the Dampier-Bunbury natural gas trunkline.
Waitsia Stage 2 gas sales are expected to begin in second-half 2023.
Development includes drilling of up to six new wells and construction of a new 250 terajoule/day gas processing facility and associated gas gathering infrastructure.
The gas processing agreement with the North West Shelf participants includes tolling and processing of enough Waitsia gas to produce as much as 1.5 million tonnes/year of LNG through the North West Shelf plant on the Burrup Peninsula between 2023 and end 2008 (OGJ Online, Aug. 17, 2020). Beach and Mitsui will market their LNG equity interests independently of the North West Shelf participants.
Gas from Waitsia to Burrup will be delivered via the Dampier-Bunbury pipeline. A pipeline connection to the line from Waitsia is in place as part of the Waitsia Stage 1 expansion.
A domestic gas marketing obligation of 20 terajoules/day, in place through the Stage 1 Xyris gas processing facility, will continue throughout the LNG export period.
