Waitsia gas to be processed at NW Shelf facilities

The Beach Energy Ltd.-Mitsui group has made a preliminary agreement with the Woodside Petroleum-led North West Shelf joint venture for the processing of onshore gas from Beach’s Waitsia field at the North West Shelf LNG plant on the Burrup Peninsula.

A similar non-binding agreement has been made for gas from Woodside’s offshore Pluto field to be treated at the North West Shelf plant.

The two arrangements have been born of the NW Shelf JV’s need to bring in third party gas to bolster supplies for its five trains at the Burrup plant, particularly since the plan to bring in supplies from Woodside’s proposed Browse development was put on hold in March due to the slump in oil prices.

Beach confirmed that gas from the second stage of its Waitsia gas development in the North Perth basin, involving 250 terajoules/day, will be processed at the Burrup plant beginning in 2023.

Gas from Pluto is expected to reach the NW Shelf plant in 2022 when the interconnector pipeline between the Pluto plant (also on the Burrup Peninsula) and the NW Shelf plant comes on line.

Referring to the Waitsia deal, the Western Australian government said it has given in-principle support enabling Waitsia gas to supply shortfall capacity at the NW Shelf plant and to export some of its gas as LNG for a short time.

The government added that this will ensure Waitsia Stage 2 development goes ahead and delivers large volumes of new gas to Western Australia.

The government has tightened its domestic gas reservation policy to ensure there are no exports to Australia’s eastern states, nor overseas, with the exception of Waitsia. The policy stipulates that the LNG industry in Western Australia must make the equivalent of 15% of exports available to the State grid. Gas sold to power ships will not be considered part of WA’s domestic supply.

The latest changes ensure none of that reserved gas can be onsold to the eastern states or overseas.