Exxon Mobil subsidiary Esso Australia and BHP Group are moving forward with a project that boosts gas output from their Gippsland Basin Kipper field in southeast Australia, according to Reuters.
The A$400 million ($291 million) project would add around 200 petajoules of gas to the Australian market over the next five years, reports Rigzone. About 30 petajoules are expected to come online in 2023 and provide critical gas supplies to the market. The extra production from the Gippsland Basin will come online ahead of five proposed LNG import terminals, only one of which has begun preliminary construction work, says Reuters.
BHP’s stake in the Gippsland Basin joint venture is set to go to Woodside Petroleum, pending a vote of the Australian company’s shareholders in May. BHP will continue to contribute its 50 percent share of the joint venture’s development spending for as long as it remains a stakeholder.