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    ExxonMobil starts West Barracouta gas project

Summary

The project will supply much need gas to eastern Australia, ExxonMobil said.

by: Shardul Sharma

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ExxonMobil starts West Barracouta gas project

Esso Australia is now delivering gas to eastern Australia after the commissioning of the West Barracouta gas project offshore Victoria, its parent company ExxonMobil Australia said on April 20.

The company said that the project will now deliver “much-needed” gas supplies to help curb the potential gas shortfalls predicted for Australia’s southern and eastern states as early as 2023.

"West Barracouta will likely be the largest domestic gas project for eastern Australia that comes along this decade, building on our long and proud history of reliably supplying gas used in Australian homes and businesses for more than 50 years," said ExxonMobil Australia chairman Nathan Fay.

Fray added that the Gippsland basin remains today the largest single source of gas supply to the east coast domestic market. “And West Barracouta demonstrates it still has the capacity to bring material new gas supply to the market - there is still plenty of potential left in the Bass Strait,” he said.

Esso operates the Gippsland basin joint venture on behalf of a 50-50 joint venture with BHP.

Australia's peak oil and gas industry body Appea said the commissioning of the West Barracouta project is proof that Australia’s oil and gas industry continues to deliver for the Australian economy.

Appea CEO Andrew McConville said the development will deliver additional gas to the Australian domestic market just in time for winter but more supply is still needed. "The Gippsland project shows the industry is providing reliable supplies of gas to the east coast domestic market but more is needed and only with the right policy settings can that happen," he said.