ExxonMobil and its partners in the Gippsland Basin, offshore southeastern Australia, are investing nearly $200 million in a new natural gas project aimed at meeting Australia’s domestic energy needs.
Exxon’s subsidiary, Esso Australia Resources Pty Ltd, alongside its partners Mitsui and Woodside Energy, has approved the Kipper 1B Project. This initiative is designed to increase gas supply from the Gippsland Basin, the U.S. oil giant announced on Monday.
The project will involve drilling and installing a subsea well into the Kipper field, as well as significant upgrades to the West Tuna platform. Exxon expects the Kipper 1B Project to boost gas production and deliver vital supplies to the market before the winter of 2026.
“Projects like Kipper 1B are essential to meet Australia’s energy security needs by increasing domestic supply,” said Simon Younger, ExxonMobil Australia Chair, in a statement.
Exxon’s Australian division is continuing to invest in several projects aimed at maintaining gas production from the Gippsland Basin into the 2030s, the company added.
The Gippsland Basin, located around 200 km (125 miles) east of Melbourne, is one of Australia’s most productive hydrocarbon regions.
Australia is focusing on expanding natural gas production to address the pressures on supply during peak demand periods in major consumption areas. The Australian government is committed to supporting the gas industry, including exploration and increased production, as natural gas will play a critical role in the country’s transition to a net-zero economy by 2050. Additionally, the fuel will help ensure reliable energy supplies for Australia’s international allies, according to the Future Gas Strategy unveiled last year.
Minister for Resources and Northern Australia, Madeleine King, emphasized that gas will remain a key energy source until 2050 and beyond, with its role evolving as the country works to improve industrial energy efficiency, support renewable energy, and cut emissions.
Related Topics:
- Is All Pennzoil Made from Natural Gas?
- Does a Natural Gas Fireplace Need Vented? A Detailed Analysis
- Why Natural Gas is Preferred Over Other Fuels: A Comprehensive Look