ExxonMobil to expand gas output off Australia

ExxonMobil’s Esso Australia said on Thursday it has made a final investment decision to develop additional gas from the Gippsland Basin Kipper, off southeast Australia, to help meet domestic demand.

The company said that the estimated investment is AUD $400 million to deliver an additional 200 petajoules of gas between 2023 and 2027.

“These estimated AUD $400 million investments could deliver an additional 200 petajoules of gas over the next five years,” the company said in a statement.

They said that about 30 petajoules will be online in 2023 to “provide critical gas supplies to help avert winter supply risks forecast for Australia’s southern states in the Australian Energy Market Operator’s 2021 Gas Statement of Opportunities.”

“Natural gas has an increasingly important role in meeting demand for cleaner fuel, lowering GHG emissions in the power sector and supporting higher penetration of renewables by maintaining reliability, resilience and stability of the grid,” ExxonMobil Australia Chair Dylan Pugh said in the statement.

The Australian Competition and Consumer Commission (ACCC) warned in February that the country will face a gas shortfall from 2026 in the country's east coast market.

“There is still plenty of gas remaining in Bass Strait and we are working hard to unlock its full value. More investment will be required for Victoria to maintain its reliable supply of natural gas, especially during winter,” added Pugh.

ExxonMobil’s Esso Australia and BHP Petroleum operates the Gippsland Basin Joint Venture on behalf of a 50-50 joint venture.