Exxon Mobil Corp. subsidiary Esso Australia Pty Ltd. has commissioned the Gippsland Basin Joint Venture’s West Barracouta project, delivering gas to eastern Australia, the company said April 21.
The startup comes ahead of peak winter demand.
“The Gippsland Basin remains today the largest single source of gas supply to the east coast domestic market,” said ExxonMobil Australia chairman Nathan Fay. “And West Barracouta demonstrates it still has the capacity to bring material new gas supply to the market—there is still plenty of potential left in the Bass Strait.”
The development involved drilled two gas production wells along with constructing subsea gas production facilities to access gas at the existing Barracouta field, according to Exxon. Gas is delivered through a 5-km pipeline via a new connection to the existing Barracouta pipeline, enabling direct gas flow to the Longford Gas Plants.
Exxon said the development enables the delivery of gas to southern and eastern Australian states, where a potential gas shortfall had been predicted as early as 2023.
Esso Australia operates the Gippsland Basin JV on behalf of a 50-50 joint venture with BHP Petroleum (Bass Strait) Pty Ltd. and Esso Australia Resources Pty Ltd.
Daniel Rice, former CEO of Rice Energy who now sits on the EQT board, addressed the elephant in the room earlier this month at Hart Energy’s Energy Capital Conference.
The acquisition of Jagged Peak will more than double Parsley Energy’s position in the Delaware Basin, where the companies expect to generate G&A savings of about $25 million within the first year.
Tailwater Capital’s premise is that demand for affordable, reliable energy isn’t going anywhere. The private equity firm’s deals are designed to help supply it.