The AWE Ltd.-operated L1/L2 joint venture has made the final investment decision (FID) for Stage 1A of the Waitsia gas field development project, located in the onshore Perth Basin, Western Australia.
Stage 1A comprises the installation of new infrastructure and upgrades to existing assets that will connect the recently flow tested Waitsia-1 and Senecio-3 gas wells to the Xyris Production Facility (XPF). Treated gas from XPF will be delivered to the Parmelia pipeline for domestic consumption.
Engineering, execution, and management costs for Stage 1A of the Waitsia gas project are estimated at gross $17.5 million ($9 million net to AWE). Construction work will include two 4-in. flowlines from the well heads to a northern gathering manifold and a 6-in. pipeline to transport the gas to XPF. FEED studies have been completed, and an EPCM contractor has been selected. In addition, the pipeline license and the environmental plan for the in-field gas pipeline have been approved.
The initial capacity of XPF will be approximately 10 TJ per day, with further expansion possible, and first gas is scheduled for August. A take or pay gas sales agreement, based on 90% of annual gas quantity, has been negotiated with Alinta Energy for 10 TJ/day over a 2.5-year period. Pricing remains confidential.
The joint venture partners in L1/L2 are AWE (via subsidiaries) (operator) 50%, and Origin Energy Resources Ltd., 50%.