A 7.5 million metric ton/year liquefied natural gas export project could be built near Darwin on Australia's north coast, under a scheme proposed by Woodside Petroleum Ltd., Perth, and Shell Development (Australia) Pty. Ltd.
The two companies have signed a letter of intent to study feasibility of a two-train LNG export plant and a domestic gas supply project, for first LNG delivery in 2005. LNG sales will be targeted at Asian markets.
Shell said the partners have gas reserves estimated at more than 5 tcf in the Sunrise, Troubadour, Loxton Shoals, and Evan Shoal offshore discoveries: "Both companies are committed to substantial exploration and appraisal programs in their permit areas, with the objective of adding to these reserves."
Woodside and Shell also intend to discuss with third parties development of other discoveries in the vicinity.
The feasibility study is expected to take 18 months.
In addition to this proposal and possible expanding the existing North West Shelf LNG export project, Australian operators are considering plans for adding to the country's LNG export capacity.
A strong program of exploration and development and the prospect of increased demand for LNG in the next century have spawned some major new gas discoveries and/or confirmed significant extensions to big gas finds off Western Australia in recent years.
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