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- Esso Australia announces it will invest $400 million to develop additional gas from the Gippsland Basin Kipper field in Victoria, helping to ease concerns about a looming gas shortage across Australia’s east coast
- The investments is said to deliver an additional 200 petajoules of gas over the next five years, estimating about 30 petajoules will come online in 2023 and provide critical gas supplies to help avert winter supply risks
- The investment was also welcomed by the Australian Petroleum Production & Exploration Association (APPEA), with APPEA Chief Executive Andrew McConville saying the investment is a “vote of confidence” in Australia’s future of natural gas
- Mr McConville said gas was a cleaner energy source to support the growth of renewables and projects like Esso Australia’s would play an important role in reducing emissions.
- In early 2021, Esso Australia commissioned the West Barracouta project in the Gippsland Basin, one of the largest domestic gas projects this decade.
Esso Australia announced it will invest $400 million to develop additional gas from the Gippsland Basin Kipper field in Victoria, helping to ease concerns about a looming gas shortage across Australia’s east coast by securing additional supply for the Australian domestic market.
The investments are said to deliver an additional 200 petajoules of gas over the next five years.
Esso estimates that about 30 petajoules will come online in 2023, and provide critical gas supplies to help avert winter supply risks forecast for Australia’s southern states as predicted in the Australian Energy Market Operator’s 2021 Gas Statement of Opportunities.
“Our ongoing investment and commitment to supplying Australian customers means that the Gippsland Basin remains the largest single source of natural gas for Australia’s east coast,” says ExxonMobil Australia Chair Dyland Pugh.
“Natural gas has an increasingly important role in meeting demand for cleaner fuel, lowering GHG emissions in the power sector and supporting higher penetration of renewables by maintaining reliability, resilience and stability of the grid.
“There is still plenty of gas remaining in Bass Strait and we are working hard to unlock its full value.
“More investment will be required for Victoria to maintain its reliable supply of natural gas, especially during winter.”
The investment was also welcomed by the Australian Petroleum Production & Exploration Association (APPEA), with APPEA Chief Executive Andrew McConville stated that the “cheapest gas in the [one] closest to the customer”.
“This is a $400 million vote of confidence in the future of natural gas that will develop more supply, more security and more jobs,” he says.
“Victoria, in particular, has the highest domestic use in the country as well as an expanding manufacturing base so today’s news will help feed that and sure up east coast supply.
Mr McConville said gas was a cleaner energy source to support the growth of renewables and projects like Esso Australia’s would play an important role in reducing emissions.
“Natural gas is replacing coal and wood-fired power across the Asia-Pacific region to help meet net zero targets so this project will play its part reducing emissions”.
He added that more industry investment like Esso Australia’s relies on supportive investment settings to help make Australia more competitive in global capital markets.
In early 2021, Esso Australia commissioned the West Barracouta project in the Gippsland Basin, one of the largest domestic gas projects this decade.
