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MinRes mulls size of Western Australia gas development

  • Märkte: Natural gas
  • 20.11.23

Diversified Australian mining firm Mineral Resources (MinRes) is aiming to reach a final investment decision (FID) on its Perth basin gas assets in Western Australia (WA) during January-March, although the scope of the project will depend on the state government's gas policy.

MinRes' 80pc-owned Lockyer Deep gas field accounts for three of four wells the firm has drilled in the Perth basin. Another two further campaigns are planned for Lockyer four and five in December and early 2024, the firm said at its 2023 annual general meeting. MinRes is aiming for production from Lockyer Deep by the end of 2025, following a FID.

But the size of the gas plant for the field could range from 30 TJ/d (800,000 m³/d) if MinRes is unable to export onshore gas as LNG, or up to a A$1bn ($655mn), 250 TJ/d facility if it is able to access an export permit that is a similar scale to Australian independent Beach Energy's Waitsia project.

A 250 TJ/d plant will be uneconomical without exports, MinRes managing director Chris Ellison said, as the WA market would be flooded with gas, proposing a 15pc domestic gas reservation where 85pc of the larger gas plant's output could be exported as LNG.

MinRes would sell its gas in the spot market instead of contracted volumes, Ellison said, allowing the firm to return to domestic supply and downstream development from next decade when shortfalls of more than 200 TJ/d in WA's gas supply are predicted.

"When we do get a shortage, they're predicting around 2030, 2031 we can turn the exports off, we would've earned enough to pay for the capital on the plant and we can turn our gas back into the domestic market," Ellison said. "About then we'll be ready to go and do some downstream of our own. So my expectation is that we'd look at building our own urea plant. We're probably looking at methanol and trying to lessen our diesel burn."

The WA state Labor government has firmed up its opposition to onshore gas being exported, ahead of a parliamentary inquiry into the state's 15pc domestic reservation policy due to issue its report on 30 November.

Diminishing output from offshore Carnarvon basin fields is likely to result in one of five production trains at Australia's largest single gas project, the 16.9mn t/yr North West Shelf LNG, closing next year.


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