Western Gas Corp. Pty Ltd (WGC) has signed a non-binding term sheet with the North West Shelf project participants and a non-binding Heads of Agreement with Pluto LNG for gas from WGC's Equus fields to be processed through Pluto and Karratha infrastructure on the Burrup Peninsula.
The deal involves processing 2-3 million tonnes/year (tpy) of gas from the Equus project for LNG export and domestic gas supply into the Western Australian market.
WGC is 100% owner of Equus fields which hold reserves of 2 tcf of gas.
The non-binding agreements include a term sheet with North West Shelf participants (Woodside Energy Ltd., operator) to produce and export Equus LNG via the Karratha gas plant from 2027 and an agreement with Pluto LNG (Woodside-operated) initially for transport of feedgas to the Karratha plant prior to capacity being available at Pluto Train 1, and processing at Pluto Train 1 once processing capacity becomes available.
Equus gas will be supplied via a floating storage and offtake vessel (FPSO) and a new undersea gas pipeline connecting Equus fields to the existing Pluto A platform. Gas will be transported onshore via the existing Pluto trunkline to the Pluto LNG plant and then via the Karratha plant via the existing Pluto-Karratha interconnector pipeline.
The development concept envisages processing:
- 300-500 MMcfd in the NWS Karratha plant for LNG export and 50-75 terajoules/day for domestic gas supply from mid-2027 until end 2030 with an extension option to be considered.
- 250-300 MMcfd in Pluto Train 1 for LNG export as capacity becomes available and up to 50 terajoules/day of domestic gas.
The net result is that WGC will deliver 2-3 million tpy of Equus-sourced LNG for 10-20 years from 2027 for export as well as upwards of 50 terajoules/day of Equus gas into the Western Australian market from 2027 via the existing Dampier-Bunbury gas trunkline.
Agreement participants will now undertake joint technical studies on the integration and optimization of Equus gas into the existing infrastructure to finalize binding commercial arrangements for transportation and processing.
Completion of technical studies and entrance into binding agreements is expected in 2023 to then move into the front-end engineering and design (FEED) stage.
A final investment decision is expected in 2024 with start up in 2027.
NWS projects are operated by Woodside with 33.33%. Partners are BP Developments Australia Pty Ltd., Chevron Australia, Japan Australia LNG, and Shell Australia, each with 16.67%.
Woodside is Pluto LNG operator with 90% interest. Partners are Tokyo Gas 5% and Kansai Electric 5%.
