ExxonMobil’s Australian subsidiary and Woodside Energy have approved the final investment decision for the $221 million Turrum Phase 3 project. This initiative is focused on accessing untapped gas resources in the Gippsland Basin. As part of the project, five new wells will be drilled in the Turrum and North Turrum gas fields, ensuring a continued gas supply to Australia’s east coast.
Australia’s competition regulator has raised concerns that the east coast could experience gas shortages by 2027, potentially leading to a reliance on gas imports. The Turrum Phase 3 project is seen as essential in addressing this issue and maintaining a stable domestic gas market. Simon Younger, chair of ExxonMobil Australia, stated that while the Gippsland Basin’s resources will eventually run out, projects like Turrum will help sustain gas production in the Bass Strait beyond 2030.
The Gippsland Basin joint venture, a 50-50 partnership between Esso Australia Resources (ExxonMobil’s subsidiary) and Woodside Energy, is operated by Esso Australia. The approval of Turrum Phase 3 follows the recent approval of the Kipper 1B project, another initiative aimed at boosting gas output from the region.
Woodside’s executive vice president, Liz Westcott, emphasized the importance of these investments in preventing future gas supply shortages. She noted that all gas extracted from the Bass Strait fields is dedicated to Australia’s domestic market.
With both ExxonMobil and Woodside moving forward with these projects, Australia’s energy market is set to see a significant increase in gas supply. This should help stabilize domestic gas prices and ensure energy security for the country beyond the next decade.
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