ExxonMobil Australia, in collaboration with Woodside Energy, has approved a $221 million investment for the Turrum Phase Three gas project in the Gippsland Basin.
The joint venture plans to develop untapped gas resources in the region with an investment of A$350 million ($221 million). The project aims to help alleviate potential gas shortages on Australia’s east coast by drilling five new wells in the Turrum and North Turrum gas fields.
This decision comes as Australia’s competition regulator has raised concerns about a possible gas supply shortfall starting in 2027. There are fears that this could lead to the need for gas imports due to ongoing declines in supply and uncertainties over future investments.
In a statement to Reuters, ExxonMobil Australia’s chair, Simon Younger, said, “While depletion of the Gippsland Basin is inevitable, projects like Turrum will ensure that Bass Strait continues to supply gas to the domestic market beyond 2030.”
The Gippsland Basin joint venture is equally owned by Esso Australia Resources and Woodside Energy (Bass Strait), with Esso Australia leading operations.
Woodside’s Executive Vice President and COO for Australian operations, Liz Westcott, emphasized that the Turrum Phase 3 project, alongside the recently approved Kipper 1B project, is vital for preventing future gas shortfalls. She added, “Every molecule of gas Woodside supplies from the Bass Strait fields is directed to the Australian domestic market, supporting local manufacturers, power generators, and homes.”
Additionally, ExxonMobil affiliate, ExxonMobil LNG Asia Pacific, has entered into a long-term agreement to purchase around 1.5 million tonnes per year of liquefied natural gas (LNG) from the Cedar LNG project.
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