Woodside and the North West Shelf (NWS) project participants have finalised arrangements with the Western Australian government enabling the supply of Pluto feed gas, via an interconnector pipeline, for processing at the Karratha gas plant (KGP), Woodside said on January 29.  

These arrangements follow the execution of a fully termed gas processing agreement in December 2020 between Woodside and the NWS project participants to process approximately 3mn metric tons of LNG in aggregate and approximately 24.7 petajoules of domestic gas at KGP in the processing period (2022 to 2025).  

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Woodside has also agreed with the state to market and make available an additional 45.6 petajoules of domestic gas from its existing NWS equity position from 2025.  

Woodside CEO Peter Coleman said this milestone builds on the company’s long-standing commitment to the Western Australian gas market and provides the energy security required to underpin the development of new industry for the state.  

“Connecting the Pluto and NWS facilities accelerates the production of offshore Pluto gas and provides flexible access to emerging LNG processing capacity. The Pluto-KGP Interconnector is the first step in realising our vision for a regional LNG hub on the Burrup Peninsula,” Coleman said.  

Western Australia premier Mark McGowan in a separate statement said the Pluto acceleration project helps keep the North West Shelf LNG trains full and clears the way for new LNG export industry development. "These agreements with Woodside reinforce our domestic gas policy and provide certainty for LNG industry investors and domestic gas consumers," he added.  

Woodside said that the construction started this month on the additional infrastructure required at KGP and the 5-km, 30-inch Pluto-KGP Interconnector. The interconnector pipeline will be constructed along the existing Dampier to Bunbury gas pipeline corridor.  The start-up of the Pluto-KGP Interconnector is targeted in 2022.  

The NWS project participants are Woodside; BHP Billiton; BP; Chevron; Japan Australia LNG; and Shell. Woodside Burrup holds a 90% interest in Pluto LNG and operates the Pluto LNG facilities.