Oil supermajor ExxonMobil has made a final investment decision to expedite more gas from the Kipper field in the Gippsland Basin.
Esso Australia, a subsidiary of ExxonMobil, is the operator of the Gippsland Basin Joint Venture and said the project was needed to expedite production to secure critically needed supply for the Australian domestic market.
The company said in a statement it was also considering optimising production from the Turrum field.
ExxonMobil said an estimated $400 million investment in these fields could inject an additional 20 petajoules of gas over the next five years, with about 30 petajoules coming online next year as critical supply to offset winter supply risk forecasts for the southern states, which have been red flagged in the Australian Energy Market Operator’s 2021 Gas Statement of Opportunities Report.
ExxonMobil Australia Chair, Dylan Pugh, said: 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.
“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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