First gas from Waitsia planned for August
PERTH (miningweekly.com) – ASX-listed AWE and partner Origin Energy have taken a final investment decision on Stage 1A of the Waitsia gas field project, in Western Australia.
The A$17.5-million project would comprise the installation of new infrastructure and upgrades to existing assets which would connect the recently flow-tested Waitsia 1 and Senecio 3 gas wells to the Xyris production facility.
Treated gas from Xyris would be delivered to the Parmelia pipeline for domestic consumption.
The Xyris production facility was expected to have an initial capacity of 10 TJ/d, with further expansions possible, and first gas has been scheduled for August this year.
AWE MD and CEO Bruce Clement said on Tuesday that the final investment decision of the first stage of the Waitsia gas project was a landmark for the company, and would reinvigorate the potential for onshore gas production in Western Australia.
“First stage production from Waitsia will provide early cash flow from mid-2016, as well as valuable data that will help us optimise our plans for full field development.”
“When fully developed, AWE anticipates that production from the Waitsia field could be increased from 10 TJ/day to more than 100 TJ/day, which represents approximately 10% of Western Australia’s daily domestic consumption.”
Clement noted that AWE was also evaluating the potential co-development of the nearby Senecio/Synaphea/Irwin tight gas field, which were estimated to contain a combined 237-billion cubic feet of gas.
With the development of the 484-billion cubic feet Waitsia gas project, AWE was expected to become a low-cost gas producer in Western Australia.
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