ConocoPhillips, Origin Energy, Santos and other owners of undeveloped gas fields off Darwin have launched a feasibility study into a multi-billion dollar, multi-field expansion of the Darwin LNG project, funded with support from the Northern Territory government.
Darwin LNG is a one-train project that is run by Conoco, part-owned by Santos and has been producing since 2006.
NT Chief Minister Michael Gunner said the Labor government would contribute $250,000 to a $625,000 feasibility study into building a second LNG production train at the LNG plant’s Wickham Point site and underpinning it with gas from multiple fields.
“This is a significant investment towards the business case for potential expansion at Darwin LNG, potentially creating thousands of jobs during construction and operation,” Mr Gunner said.
He said the study will explore different LNG process technologies and production rates to support a low-cost development for a second LNG train.
ConocoPhillips NT and WA external affairs chief, Kayleen Ewin, said the feasibility study was the first step in finding new ways to commercialise substantial offshore gas resources in Northern Australia.
“With Darwin LNG, five upstream joint ventures and the Northern Territory government involved, it is a pioneering example of all of industry and government collaborating on solutions to unlock major investments,” she said.
The announcement comes as Conoco mulls a $10 billion development of the Barossa field to provide gas for the existing LNG train at Darwin when reserves from the Bayu-Undan field in the Timor Sea that underpinned the LNG plant run low in 2022.
Last month, Conoco warned that if changes were made to the Petroleum Resource Rent Tax that prevented Barossa going ahead, Darwin LNG could be mothballed.
The remainder of the study is being funded by Conoco and owners of the Evans Shoal, Caldita-Barossa, Poseidon (Origin Energy), Cash Maple (PTTEP) and Petrel Tern (Engie and Santos) fields gas fields off Darwin.
source: www.theaustralian.com.au
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