APPEA: Macedon Project Boosts Domestic Gas Supply in Western Australia

Today’s opening of the Macedon Domestic Gas Project in Western Australia provides a significant boost to the state’s domestic gas supply and shows that domestic and export gas projects can grow in tandem.

Macedon, a $1.5 billion joint venture between Apache Energy Limited and BHP Billiton, is WA’s fourth domestic gas supply hub. It will play a crucial role in delivering the state’s growing energy needs.

APPEA Chief Operating Officer Western Australia, Stedman Ellis said: “This is a significant development that diversifies and secures WA’s gas supply.

“It’s also consistent with recent forecasts from state’s first Gas Statement of Opportunities that confirm that WA has more than enough natural gas for both domestic and export markets.”

Macedon has a production capacity of 200 terajoules of natural gas per day.

Operations include four offshore production wells and a gas sales pipeline that connects the Macedon plant to the Dampier to Bunbury Natural Gas Pipeline.

Mr Ellis said: “Our long-term energy supply is best delivered through efficient operating markets and by encouraging new entrants and competition.

“Market forces, price movements and growth of the gas export industry – not the interference of commercial incentives – drive WA’s domestic gas market.”

According to the Gas Statement of Opportunities released recently, WA will have transitioned from two to six domestic gas suppliers by 2016.

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LNG World News Staff, September 20, 2013; Image: APPEA