Woodside has made a final investment decision (FID) on the Pluto-NWS Interconnector pipeline, the first component in the infrastructure needed to transport gas from the Pluto LNG project to the Karratha gas plant in Western Australia. In addition, the Australian company has also entered into contractual arrangements with DDG Operations for the construction of the pipeline, as well as its ongoing operation and maintenance.
Construction and operation of the pipeline is subject to regulatory approvals by the State of Western Australia and finalization of the commercial arrangements with Pluto and NWS (North West Shelf) joint venture participants.
Woodside CEO Peter Coleman said in a statement that the pipeline is a key component of a proposed hub on the Burrup Peninsula. It could potentially fill short-term spare capacity at the Karratha plant, which is located on the peninsula.
“Our vision for the Burrup Hub will unlock the future value of infrastructure which has been supplying gas to Western Australia and the world safely and reliably for more than 30 years. The interconnector will enable us to optimize the processing of gas from our offshore fields,” Coleman said.
The Burrup Hub involves the development of between 20 and 25 Tcf of gross dry gas resources from the Pluto, Scarborough, and Browse fields using the Pluto LNG facilities and the Karratha plant. Woodside said on its website that the hub could process more gas than the entire volume extracted from the North West Shelf since 1984.
Pluto LNG processes gas from the Pluto and Xena gas fields offshore Western Australia. Gas is piped through a 180-km trunkline to an onshore LNG-processing train. The project has a 4.9-mtpa capacity.
Woodside said it is targeting startup sometime in the first half of 2022.