AWE reports Waitsia Stage 2 entering FEED phase

AWE Ltd., Sydney, operator of the north Perth basin production licences L1/L2, has announced the beginning of the design competition phase of front-end engineering and design of the Waitsia gas project Stage 2.

The design for the facilities will include a gas plant capable of processing 100 terajoules/day of gas along with carbon dioxide extraction, collection hubs, and flow lines.

AWE says the competition will enable the joint venture to establish a high degree of capital cost certainty.

Four contractors have been selected to submit designs: Quanta-Suez, ATCO Australia, SNC-Lavalin, and Clough.

The design competition will begin immediately and will be followed by a commercial phase.

AWE is targeting completion of all phases of FEED by yearend.

AWE is currently drilling the Waitsia-3 appraisal well, the first of a two-well program to fully evaluate the field reserves. The company also is negotiating gas sales agreements with a number of potential customers.

Last year the company said the 2P reserves had increased to 344 bcf of gas. It added that the 2P reserves plus the 2C contingent resources for the field had increased by 30% to 630 bcf of gas.

In addition, the total gross 2P reserves plus 2C contingent resources when combining Waitsia with nearby finds at Senecio, Irwin, and Synaphea went up 20% to 867 bcf of gas.

The project’s Stage 1A came on stream in August 2016 at a capacity of 10 terajoules/day. Stage 1A involved connection of the Waitsia-1 and Senecio-3 gas wells to the upgraded nearby Xyris production facility. The gas is flowing into the existing Parmelia pipeline and Alinta Energy is taking up to a maximum quantity of 9.6 terajoules/day under a signed 2½-year take-or-pay gas sales agreement.

Waitsia is about 370 km north of Perth and 16½ km east southeast of Dongara.

AWE and combine partner Origin Energy Ltd., also of Sydney, each hold equal interests.

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