Pluto Gas Project Approved

November 8, 2007 // Published as a news service by IHS

The Pluto project will produce liquefied natural gas (LNG) for export and also provide significant infrastructure for a domestic gas phase to supply the WA domestic market in the future, said APPEA.

With vast offshore gas resources and a stable political and regulatory environment, Australia is likely to quickly expand its role as one of the major energy suppliers to the wider Asian region, said APPEA Chief Executive Belinda Robinson.

Robinson said APPEA welcomed the Commonwealth approval of Pluto as the project would have a significant economic impact, provide a large number of new jobs and produce very real global environmental benefits.

The project is expected to cost A$12 billion and will support up to 3000 jobs during construction with 300 permanent jobs created during the operational phase. First gas is expected in late 2010.

The Pluto LNG project will initially include one natural gas production train producing 4.3 million tonnes a year but has been designed for expansion up to 12 million tonnes a year.

Studies are already underway for an expansion of LNG capacity with the addition of a second and third production train as well as a domestic gas facility to supply the WA market.

The project is based on Woodside's Pluto and Xena gas fields and is underpinned by 15-year sales agreements with Tokyo Gas and Kansai Electric Power Co, said Robinson.

"This is a win for economic development and a win for the environment. Importantly it is also recognition that industry and heritage can co-exist on the Burrup Peninsula," said Robinson.

Source: Australian Petroleum Production & Exploration Association Limited (APPEA).