OIL

NWS Venture approves second trunkline project

The North West Shelf Venture has confirmed it will build a second trunkline which will link the Venture's offshore production facilities, about 130km north west of Karratha, to the onshore gas plant on the Burrup Peninsula, Western Australia.

According to one of the partners, Woodside, the second trunkline will cost about A$800 million and complement the current expansion of the Venture's onshore gas processing facilities, which includes a $1.6 billion fourth LNG processing train and associated infrastructure.

"The second trunkline will provide extra capacity to supply existing Japanese and other customers. Total agreements for LNG from Train 4 now stand at almost 3.9 million tonnes of LNG a year," Woodside said.

"The 42 inch diameter sizing of the second trunkline has been chosen to provide sufficient capacity to feed LNG Trains Four and Five and to cater for substantial growth in gas supply demand for domestic use and onshore downstream gas processing."

Woodside added that Trains Four and Five will more than double the current LNG plant capacity from 7.3 to 16 million tonnes per annum. Construction of the trunkline is scheduled to finish in April 2004 to coincide with completion of Train 4. First LNG production from Train 4 is scheduled for mid-2004.

The six equal participants in the North West Shelf Venture are: Woodside Energy Ltd, (operator); BHP Billiton Petroleum (North West Shelf) Pty Ltd; BP Developments Australia Pty Ltd; Chevron Australia Pty Ltd; Japan Australia LNG (MIMI) Pty Ltd; and Shell Development (Australia) Proprietary Limited.

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