ExxonMobil and Woodside greenlight $221 million Turrum Gas expansion

ExxonMobil’s Australian subsidiary and Woodside Energy have approved a $221 million investment to expand the Turrum gas project. The decision will fund the drilling of five new wells in the Turrum and North Turrum gas fields, aiming to tap into underdeveloped reserves and boost supply to Australia’s east coast.

The move comes as the Australian Competition and Consumer Commission warns of potential gas shortages by 2027, which could force the country to import gas for the first time. The shortfall is attributed to declining production from existing fields and uncertainty around future investments.

“While depletion of the Gippsland Basin is inevitable, projects like Turrum Phase 3 will ensure Bass Strait continues to deliver much-needed gas,” said Simon Younger, Chair of ExxonMobil Australia.

The Gippsland Basin joint venture, a 50-50 partnership between Esso Australia Resources (an ExxonMobil affiliate) and Woodside Energy, operates under Esso Australia. Woodside’s Executive Vice President for Australian operations, Liz Westcott, highlighted the importance of Turrum Phase 3 alongside the recently approved Kipper project. “Every molecule of gas we can develop helps keep Australian businesses running and homes heated,” she said.

With rising concerns over energy security, this investment marks a critical step in sustaining domestic gas supply and delaying the need for imports.