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Western Gas selects development partners for Australian Equus gas project
Western Gas, 100% owner and operator of the Equus gas project, has signed a Memorandum of Understanding (MOU) with oil and gas service and technology providers McDermott International and Baker Hughes, a GE company (BHGE), for the provision of project development services from pre-FEED and FEED (front-end engineering and design) studies through the EPCIC (engineering, procurement, construction, installation and commissioning) phases of the project.
The agreement is for the provision of drilling, subsea, offshore processing, nearshore LNG production and a gas pipeline to shore for domestic gas supply. McDermott and BHGE were also awarded a contract to support the planning phases of the project and pre-FEED studies.
According to Andrew Leibovitch, Executive Director, Western Gas, the integrated design-to-install contracting approach is an Australian first for a project of this size and scale and will ‘help deliver an efficient development plan, enhance project economics and reduce time to first gas’.
The Equus gas project is located in the heart of the Carnarvon Basin, Australia’s premier production basin, and comprises an independently certified resource of 2tn cf of gas and 42mn barrels of condensate. It is to be developed in phases, with the initial development comprising three production wells linked by subsea infrastructure to a floating production, storage and offloading (FPSO) unit. Facilities onboard the FPSO will include gas dehydration, condensate stripping and gas compression.
Dry sales gas will be piped to a nearshore LNG production facility. Sales gas will also be piped onshore for the Western Australian domestic gas supply. The Equus resource is sufficient to supply 25% of Western Australia’s domestic gas demand, or 2mn t/y of LNG for 20 years, according to Western Gas. The final investment decision (FID) is planned for late 2019/early 2020, with gas supply from late 2023/early 2024.
For more on Australia’s E&P sector, see Petroleum Review’s December 2018/January 2019 issue.
News Item details
Journal title: Petroleum Review
Countries: Australia -
Subjects: Gas markets, Liquefied natural gas, Exploration and production, Gas
