Regional LNG: Woodside plans new LNG project in Western Australia
Monday, August 8 2005 - 01:05 AM WIB
CEO Don Voelte said in a release Monday Woodside had intensified and accelerated its studies and appraisal program to commercialise Pluto due to a forecast strong LNG demand window opening between 2010 and 2012 in the Asia-Pacific and North America.
The Pluto field, which was discovered by Woodside in April this year in permit WA-350-P, is about 190 kilometres north-west of Karratha and 90 kilometres west of the Woodside-operated Goodwyn production platform on the North West Shelf. Voelte did not revealed Pluto?s gas reserves. But Pulo-1 which was drilled earlierthis year flowed 46.5MMCFD of gas from high quality reservoir and Pluto-2 in July confirmed southern extend, 8.5 kms south of Pluto-1.
Voelte said that established customers in Asia and potential customers in North America had shown strong interest in Pluto because of its potential size, its commercial flexibility due to Woodside?s 100% ownership, and Woodside?s acknowledged LNG experience as operator of the world-class North West Shelf Venture
?Our 100% ownership of the field will enable fast yet rigorous decision making,? Voelte said. ?We are now confident that we have sufficient gas to justify an LNG plant with a capacity of five to seven million tonnes a year to create enduring value for Woodside?s shareholders and for the citizens of Australia.
?These attributes are backed by Australia?s stable political, legal and fiscal framework,? Voelte said.
He said Woodside expected substantive progress on gas sales agreements by year end.
Capital expenditure is expected to involve several billion dollars and will be refined with front-end engineering, which is scheduled to begin in November. With a final investment decision planned for mid-2007, LNG shipments could begin from late 2010.
Woodside has allocated more than A$65 million this year for development studies, marketing and an accelerated field appraisal program including two wells by December.
Development options for the Pluto LNG Project include an offshore production platform, an offshore trunkline, up to two LNG processing trains, loading jetty and associated infrastructure. Concept selection and refinement of development options will be done concurrently with field appraisal work.
Voelte said discussions had also been under way for some time with providers of LNG technology and tenders were being prepared for the lead contractor for engineering, procurement and construction management of the LNG plant.(alex)
