DDG to build WA’s largest gas storage facility

Chevron's Wheatstone project

DUET Group has announced its 100 per cent-owned subsidiary, DBP Development Group, will build the largest gas storage facility in Western Australia.

The Tubridgi gas storage facility will be strategically located near the Chevron-operated Wheatstone and BHP-operated Macedon domestic gas production facilities.

Utilising DDG’s depleted Tubridgi onshore gas reservoir, located 30km from Onslow, the facility will be connected to Compressor Station 2 on the Dampier to Bunbury Natural Gas Pipeline via existing gas transmission laterals.

It will have a storage capacity of about 42PJ.

“The Tubridgi gas storage facility will benefit producers and customers alike who may require storage capacity to bank unused gas, smooth production profiles or to store gas to cover planned production outages,” DDG chief executive officer Stuart Johnston said.

“DDG has an outstanding reputation as a safe and reliable developer, owner and operator of critical gas infrastructure, and we look forward to ensuring these standards are continued on this project.

“In developing the project to this stage we are very pleased with the support we received from the traditional owners, the Thalanyji people and local landowners. Support from Government agencies, particularly DMP, has also enabled DDG to quickly progress to a final investment decision.”

CITIC Pacific Mining Management Limited (CPM), a CITIC Limited subsidiary, developer and operator of the Sino Iron magnetite project at Cape Preston will be the foundation customer, under a 10-year gas storage agreement with options for a further five years.CPM chief executive officer Chen Zeng said the investment decision was a “win-win”.

“This decision shows how our investment in Sino Iron continues to underpin the development of critical infrastructure for Western Australia,” Mr Zeng said.

“A reliable, cost-effective energy supply is very important for our project. The Tubridgi storage facility will greatly assist us in managing our operational requirements for energy over the long term.

“We’re looking forward to working closely with DDG for many years to come.”

The facility is expected to be operational by June 2017.