The six equal North West Shelf (NWS) Project participants have agreed to non-binding key principles for processing third-party gas through the NWS Project facilities with Woodside, in respect of gas from the Pluto fields, and with Mitsui E&P Australia and Beach Energy, in respect of the Waitsia Gas Project Stage 2.

Located 1,260 kilometres north of Perth, the Karratha Gas Plant (KGP) is one of the most advanced, integrated gas production systems in the world, capable of producing liquefied natural gas (LNG), domestic gas, condensate and liquefied petroleum gas (LPG).

According to Woodside, the facility has an export capacity of 16.9 million tonnes per annum (Mtpa), and is home to five LNG processing trains, two domestic gas trains, six condensate stabilisation units and three LPG fractionation units.

These agreements advance the NWS Project’s plans to toll third-party gas at the KGP as anticipated processing capacity becomes available this decade.

Gas produced from the offshore Pluto fields is planned to be transported to the NWS Project facilities through a five kilometre, 30-inch pipeline (the proposed Pluto-KGP Interconnector), which is expected to be ready for start-up (RFSU) in 2022.

The agreement with Mitsui E&P Australia and Beach Energy contemplates the tolling of gas related to the onshore Waitsia Gas Project Stage 2 from 2023.

The NWS Project participants are expected to work with each proponent during the second half of 2020 to agree fully termed binding gas processing and other agreements to support the respective projects.

This morning, Woodside CEO Peter Coleman said the agreements were another significant step in enabling the processing of other resource owners’ gas at KGP, unlocking further value from the facility.

“The processing of third-party gas resources will extend the operating life of the NWS Project and ensure KGP continues its significant contribution to the Australian and Western Australian economies for years into the future,” he said.

“The tolling of third-party gas at KGP provides new revenue and LNG exports, and an additional domestic gas commitment for Western Australia from Pluto.”

“We look forward to working with all parties and the Government of Western Australia over the coming months to finalise the project agreements and regulatory approvals,” Mr Coleman commented.

The NWS Project participants are: Woodside (Operator)(16.67 per cent interest), BHP Billiton Petroleum (North West Shelf) Pty Ltd (16.67 per cent), BP Developments Australia Pty Ltd (16.67 per cent), Chevron Australia Pty Ltd (16.67 per cent), Japan Australia LNG (MIMI) Pty Ltd (16.67 per cent) and Shell Australia Pty Ltd (16.67 per cent).