BHP agrees to supply Gippsland gas to AGL

Australia’s BHP, formerly known as BHP Billiton, has entered into a new gas supply agreement with its compatriot AGL Energy for the supply of natural gas from BHP’s Gippsland Basin, off Victoria. 

AGL said on Thursday that the gas supply agreement with BHP Billiton Petroleum (Bass Strait) was for 78 petajoules (PJ) of natural gas from the Gippsland Basin, Victoria.

The GSA is for a period of 3.25 years, starting in April 2020, and it will support AGL’s continued supply of its New South Wales and Victorian gas customers, the company said.

BHP, along with its JV partner and operator ExxonMobil, has produced oil and gas from Bass Strait over the past 40 years. The Bass Strait operations are located between 25 and 80 kilometers off the southeastern coast of Australia.

According to ExxonMobil, there are now 23 offshore platforms and installations in Bass Strait which feed a network of 600km of underwater pipelines.

More recently, the Kipper gas field under the Kipper Unit Joint Venture (operated by Esso Australia) has brought online additional gas and liquids production that are processed via the existing Gippsland Basin Joint Venture facilities.

The Kipper Tuna Turrum (KTT) project encompasses three fields in Bass Strait that hold an estimated 1.6 trillion cubic feet of gas, plus 110 million barrels of oil and gas liquids.

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