Woodside takes FID on key component of Burrup Hub

Australian energy giant Woodside has taken a final investment decision on the pipeline component of the Pluto-North West Shelf (NWS) Interconnector and has entered into contractual arrangements with DDG Operations for the construction of the pipeline and its ongoing operation and maintenance.

Woodside, with its Joint Venture participants, is progressing opportunities that will develop an integrated, regional LNG production center on the Burrup Peninsula in Western Australia.

The Burrup Hub involves the proposed development of some 20 to 25 trillion cubic feet (Tcf) of gross dry gas resources from Scarborough, Browse, and Pluto, relying on liquefied natural gas (LNG) facilities – Pluto LNG and the North West Shelf Project.

To realize the Burrup Hub vision, a number of activities are being advanced simultaneously: Scarborough; Pluto Train 2; Browse to NWS Project; NWS Project Extension and Pluto-NWS Interconnector.

Announcing the FID on Monday, Woodside said that the Pluto-NWS Interconnector would connect Pluto LNG and the NWS Project’s Karratha Gas Plant (KGP) and was the first component of the infrastructure needed to transport gas between the two facilities.

Construction and operation of the pipeline are subject to regulatory approvals by the State of Western Australia and finalization of commercial arrangements with the Pluto and NWS joint venture participants.

Key component of Burrup Hub

Woodside CEO Peter Coleman said the Pluto-NWS Interconnector was a key component of the proposed Burrup Hub and would provide opportunities to take advantage of future excess capacity at KGP.

“Our vision for the Burrup Hub will unlock the future value of infrastructure which has been supplying gas to Western Australia and the world safely and reliably for more than 30 years. The Interconnector between the Pluto LNG and NWS facilities will enable us to optimize the processing of gas from our offshore fields.

“Delivering the proposed Burrup Hub will help underpin Western Australia’s economic strength for decades into the future. It will provide thousands of jobs, opportunities for local suppliers and tax and royalty revenues to Western Australia,” he said.

Consultants ACIL Allen has estimated the Burrup Hub would generate an average of more than 4,000 jobs per annum in Australia over the coming decades, with more than 1,900 of those located in Karratha and Broome. It would boost Australia’s estimated gross domestic product by $414 billion between now and 2063, of which 99% would be in Western Australia.

Woodside is targeting ready for the start-up of the Pluto-NWS Interconnector in the first half of 2022. DDG Operations is part of the Australian Gas Infrastructure Group, the operator of the Dampier to Bunbury Natural Gas Pipeline.