Esso Australia is investing in the development of much-needed gas supply for the domestic market in Australia.
The subsidiary of ExxonMobil and operator of the Gippsland Basin Joint Venture has announced that it will invest AUD $400 million to develop additional gas from the Gippsland Basin Kipper field.
The Kipper gas field forms part of the Gippsland Basin joint venture between ExxonMobil and BHP Billiton Petroleum (Bass Strait). Each company has a 50% share and the partnership which began in 1964 is dubbed one of the most enduring partnerships in Australia’s corporate history.
According to the official announcement, the investment could deliver an additional 200 petajoules of gas over the next five years.
“Natural gas has an increasingly important role in meeting demand for cleaner fuel, lowering GHG emissions in the power sector and supporting higher penetration of renewables by maintaining reliability, resilience and stability of the grid,” said ExxonMobil Australia Chair, Dylan Pugh.
“Our ongoing investment and commitment to supplying Australian customers means that the Gippsland Basin remains the largest single source of natural gas for Australia’s east coast.
“There is still plenty of gas remaining in Bass Strait and we are working hard to unlock its full value. More investment will be required for Victoria to maintain its reliable supply of natural gas, especially during winter.”
Keith Pitt, Minister for Resources and Water, has welcomed Esso’s announcement of a large joint venture investment to enhance gas supply from the Gippsland Basin offshore Victoria.
“The recent ACCC report highlighted the need for new projects to meet demand for gas during peak days during winter and this project in the Gippsland Basin will help to fill that need,” Minister Pitt said.
“The development will deliver an estimated 200 petajoules of gas between 2023 and 2027 into the east coast market, contributing to our national energy security. Esso’s joint venture will provide the increased supply that will be welcomed by Victorian households and manufacturers dependent on gas.
“Esso’s joint venture will provide the increased supply that will be welcomed by Victorian households and manufacturers dependent on gas.”
