Name of the Project
Kincora gas project.

Location
Queensland, Australia.

Client
Armour Energy.

Project Description
The project will supply gas to the east coast market.

Phase 1 involves the restart of gas production, recommissioning of the gas processing and compression facilities and the increase in the gas production rate to an initial 9 TJ/d.

Gas production will initially be from the Newstead storage facility, with various existing wells across the fields progressively brought back into operation.

Phase 2 will involve the drilling of new wells, as well as workovers and stimulations of existing wells to achieve an increase in gas production to 20 TJ/d.

Subject to operational performance, further production increases will be pursued to achieve 100% plant capacity. Associated liquids production from the project historically averaged 9 942 bbl of condensate (a light oil) per PJ of gas produced, and 2 066 t of liquefied petroleum gas (LPG) per PJ of gas produced.

Based on these historical production rates, at a gas production rate of 20 TJ, liquids production is expected to reach 198 bbl of condensate and 41 t/d of LPG.

Jobs to Be Created
Not stated.

Value
Not stated.

Duration
First gas production and the start of gas sales delivery into the Australian Pacific LNG offtake agreement is targeted for June, and the balance of the restart programme, including the start of associated liquids production, is planned to be completed by August/September.

Phase 2 will take place over 12 to 18 months from first gas production and will take the total gas production rate to an estimated 70% of the Kincora gas plant nameplate capacity.

Latest Developments
Armour Energy has executed a connection agreement with APA Group.

The agreement provides Armour access to the Roma Brisbane Pipeline at Wallumbilla, which will enable Armour to supply gas to Australia Pacific LNG under the company’s previously announced gas sales agreement between the companies.

The connection agreement is also an essential component to Armour’s ability to access the broader east coast gas market, including a wide range of industrial customers, wholesale customers and traders, and other liquefied natural gas producers.

Armour’s agreement with APA is for a ten-year term and provides a connection for up to a gas flow rate for 30 TJ/d into the Roma Brisbane pipeline.

A key component of Armour’s gas supply strategy for the Australia Pacific LNG offtake arrangements and, going forward, for other customers is the Newstead gas storage facility, which has a total capacity of about 7.5 PJ.

The gas storage facility currently holds about 2.3 PJ of treated sales-quality gas, which is expected to require minimal reprocessing (compression and dehydration) before sending to market through Wallumbilla.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Armour Energy, tel +61 7 3303 0620 or email fax +61 7 3303 0681.