Australian Energy Company AWE Limited has commenced gas sales from Stage 1A of the Waitsia gas project located in the onshore Perth Basin in WA.
The company’s Managing Director and CEO, Mr David Biggs said the sale was delivered on time and within the approved budget of $18 million.
“The first gas sale form the Waitsia gas project represents a major milestone for AWE,” Mr Biggs said.
Stage 1A of the Waitsia gas project, which is a 50:50 joint venture between AWE and Origin Energy, comprised the installation of new infrastructure to connect the Waitsia-1 and Senecio-3 gas wells to the upgraded Xyris Production Facility (XPF).
Mr Biggs said the XPF has been successfully commissioned with a production capacity of 10 TJ/d.
“Gas is being delivered to the Parmelia pipeline with Alinta Energy taking up to a Maximum Daily Quantity of 9.6 TJ/day under a 2.5 year Take or Pay gas sales agreement,” he said.
Mr Biggs revealed that the company will now turn its focus on moving towards Stage 2, a full field development phase that would increase production capacity to 100 TJ/d.
According to him, the development concept process for Waitsia Stage 2 has begun, with two new appraisal/production wells planned to be drilled next year.
“The Waitsia gas field was discovered less than two years ago and we moved quickly to appraise the asset ahead of a Final Investment Decision (FID) for Stage 1A in January 2016. Engineering and construction work was completed on schedule, and first gas achieved less than none months after FID on time and within budget,” he said.
“This is the first step towards full field development of the Waitsia gas project, which will deliver significant revenue growth for AWE from 2020, and highlights the strength of our technical and operating capabilities.”