Woodside nod for NWS extension

Woodside and its North West Shelf partners have given the green light to the $US2 billion Greater Western Flank Phase 2 (GWF-2) project off the Pilbara coast.

The GWF-2 project will develop 1.6 trillion cubic feet of raw gas from the combined Keast, Dockrell, Sculptor, Rankin, Lady Nora and Pemberton fields about 175km north-west off the coast of Dampier using subsea infrastructure and a 35km pipeline connecting to the existing Goodwyn A platform. 

The total investment for the project is expected to be about $US2 billion with initial project start-up expected in the second half of 2019. 

Gas delivery will initially begin from five wells in the Lady Nora, Pemberton, Sculptor and Rankin fields, followed by the remaining three wells in the Keast and Dockrell fields in the first half of 2020. 

The GWF-2 project is the fourth major gas development for the North West Shelf project in the past seven years. 

Woodside chief executive Peter Coleman said GWF-2 was an economically robust project that would deliver significant value by leveraging Woodside’s substantial experience in delivering major subsea tieback projects. 

“The GWF-2 project continues a series of NWS project subsea tiebacks that are commercialising its gas reserves in a timely and efficient manner to extend plateau production,” he said.

The North West Shelf is Australia's largest operating oil and gas development and one of the world's biggest LNG producers.

For more than 30 years, it has been WA's largest producer of domestic gas.

Pipeline gas is processed at the consortium's Karratha facility and transported to customers in the south-west of WA via the 1530km Dampier to Bunbury natural gas pipeline.

The North West Shelf has also delivered more than 4000 LNG cargoes to customers in the Asia Pacific region and around the world since 1989.

The NWS project participants are Woodside (operator 16.67 per cent), BHP Billiton (16.67 per cent), BP (16.67 per cent), Chevron (16.67 per cent), Japan Australia LNG (MIMI) (16.67 per cent) and Shell Australia (16.67 per cent).

Woodside shares were up 19 cents to $27.04 at the close of trade.