Esso Australia, a subsidiary of ExxonMobil and operator of the Gippsland Basin Joint Venture, says it has made a final investment decision to develop additional gas from the Gippsland Basin Kipper field to help secure much-needed supply for the Australian domestic market.
Esso Australia is also advancing funding decisions to optimise production from the Turrum field. These estimated $400 million investments could deliver an additional 200PJ of gas over the next five years. About 30PJ will come online in 2023, and provide critical gas supplies to help avert winter supply risks forecast for Australia’s southern states in the Australian Energy Market Operator’s 2021 Gas Statement of Opportunities.
ExxonMobil Australia chair Dylan Pugh said Esso continues to invest to deliver reliable and affordable Gippsland gas to Australian homes and businesses, supporting local jobs and the Australian economy.
“Natural gas has an increasingly important role in meeting demand for cleaner fuel, lowering GHG emissions in the power sector and supporting higher penetration of renewables by maintaining reliability, resilience and stability of the grid,” he said.
“Our ongoing investment and commitment to supplying Australian customers means that the Gippsland Basin remains the largest single source of natural gas for Australia’s east coast.
“There is still plenty of gas remaining in Bass Strait and we are working hard to unlock its full value. More investment will be required for Victoria to maintain its reliable supply of natural gas, especially during winter.”
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In early 2021, Esso Australia commissioned the West Barracouta project in the Gippsland Basin, one of the largest domestic gas projects this decade.