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Exxon Invests in New Project to Increase Australia’s Natural Gas Production

by Krystal

ExxonMobil and Woodside Energy have approved a $222 million project to drill new wells and increase natural gas production in the Gippsland Basin off southeastern Australia. This development, known as Turrum Phase 3, will see the drilling of five new wells in the Turrum and Turrum North gas fields. The decision was made by the 50/50 joint venture between ExxonMobil and Woodside Energy, according to a statement from Exxon’s Australian unit on Monday, reported by Reuters.

Simon Younger, Chair of ExxonMobil Australia, emphasized the importance of projects like Turrum in maintaining gas production for the domestic market beyond 2030. “While depletion of the Gippsland Basin is inevitable, projects such as Turrum will ensure Bass Strait continues to supply gas to the domestic market past 2030,” he said.

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This is not the only project Exxon and Woodside are pursuing to boost Australia’s gas supply. Last month, Exxon’s subsidiary Esso Australia Resources Pty Ltd, along with Mitsui and Woodside Energy, approved the Kipper 1B Project to further increase gas production from the Gippsland Basin. This project will involve drilling a new subsea well into the Kipper field and making upgrades to the West Tuna platform. The Kipper 1B Project is expected to increase capacity and provide crucial gas supplies before the winter of 2026.

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Younger also stressed that the Kipper 1B project is critical for ensuring energy security in Australia. “Projects like Kipper 1B are vital to help meet the country’s energy security needs by bringing new supply online, which will be used exclusively for Australia’s domestic market,” he said.

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The Gippsland Basin, located about 200 km (125 miles) east of Melbourne, is one of Australia’s key hydrocarbon regions. As Australia faces potential natural gas shortages, particularly on its east coast, projects like Turrum and Kipper 1B are seen as crucial steps to avoid shortages that could occur as early as 2027, according to the Australian Competition and Consumer Commission (ACCC). This report adds to growing concerns about Australia’s ability to meet domestic demand, despite being one of the world’s largest LNG exporters.

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