The decision of the joint venture partners to proceed follows the granting of State and Federal Environmental Approvals and approval from each Joint Venture party to commit the remaining $400 million of project expenditure over the next 18 months.
The BassGas Project initially involves the development of the Yolla field, located in Bass Strait, 147 kilometers from the southern Victorian coast. The field will supply enough gas to service up to 67 terajoules of gas sales a day, together with substantial volumes of condensate and LPG. It is expected to supply around 10% of the Victorian natural gas market over the next 15 years, commencing from the second half of 2004.
Origin Energy Retail Limited has agreed to purchase 100 percent of the 20 petajoules of gas produced per annum for its Retail business through individual contracts with each Joint Venture Party. LPG will be sold to Elgas and Origin Energy Retail Limited.
Construction of the gas plant located near Lang Lang in south-eastern Victoria will commence in late January. The offshore gas platform will be constructed in South East Asia and transported to Bass Strait.
The participants in the T/RL1 Joint Venture are: Origin Energy as operator with 37.5%; AWE with 30%; CalEnergy with 20% and Wandoo Petroleum with the remaining 12.5%.
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