Oil and Gas News

Esso Australia key to increase gas supply

OGPP apa group

Australia’s gas supply is set to increase following an investment of almost half a billion dollars from ExxonMobil affiliate Esso Australia.

Esso Australia, operator of several gas and oil platforms across the Bass Strait, says that the $400 million investment will advance and optimise gas production in the Gippsland Basin. The project will take place from the Kipper and Turrum fields.

“Our ongoing investment and commitment to supplying Australian customers means that the Gippsland Basic remains the largest single source of natural gas for Australia’s east coast,” the company announced on Twitter last week.

The CEO of Australian Petroleum Production & Exploration Association (APPEA) Andrew McConville has welcomed Esso Australia’s final investment decision (FID), as it will boost much-needed supplies of natural gas for the Australian domestic market and create more job opportunities in the industry.

“These significant investments by Esso Australia, which could deliver an extra 200 petajoules of gas over the next five years and boost supply into Australia’s gas market on the east coast, can help meet future domestic demand,” he said.

McConville has suggested that the increased gas supply will be of particular benefit in Victoria.

“Victoria, in particular, has the highest domestic use in the country as well as an expanding manufacturing base so today’s news will help feed that and sure up east coast supply. The cheapest gas is the gas closest to the customer,” he said.

The project will also play a part in reducing emissions, as natural gas is a much cleaner energy source compared to coal. Not only will Esso Australia’s investment make the nation more competitive in the global market, it will support the production of renewable energy.

Subscribe to Oil & Gas Today for the latest industry news.

JOIN OUR NEWSLETTER

JOIN OUR NEWSLETTER
Close