and TXU finalise gas sales agreement
Posted: 14 April 2004
Woodside Energy Ltd. and TXU Electricity Ltd have signed a gas
sales agreement under which TXU will buy Woodside’s share
of natural gas from the Otway Gas Project at up to 30 petajoules
a year for more than 10 years.
The agreement is conditional on the project receiving all joint
venture and government approvals by mid-2004 and follows a heads
of agreement signed with TXU in August 2002. The joint venturers
are marketing their gas separately.
TXU Electricity is a subsidiary of TXU Australia, a major gas and
electricity retailer in Victoria and South Australia and operator
of the Torrens Island Power Station in South Australia. TXU is the
largest shipper and one-third owner of the recently commissioned
SEAGas pipeline between Port Campbell, in western Victoria, and
The Otway Gas Project includes the development of the Geographe
gas field, about 55km south of Port Campbell in Victorian permit
Vic/P43, and the Thylacine gas field, a further 15km south in Tasmanian
Natural gas, liquefied petroleum gas and condensate will be produced
from the gas fields and transferred by subsea and underground pipeline
to an onshore gas processing plant next to TXU’s Iona gas
plant, about 6km north of Port Campbell.
Production is planned to start in 2006 at up to 60 petajoules a
year. This is equivalent to about 10 per cent of south-eastern Australia’s
current gas demand.
The project will produce up to 950,000 barrels of condensate and
up to 125,000 tonnes of LPG a year.
Woodside’s Gas Business Unit Director, David Maxwell, said
the gas sales contract with TXU was an important step in achieving
Woodside’s commitment to establish a significant gas business
in eastern Australia.
“The contract involves more than half the gas to be produced
from the Geographe and Thylacine fields,” he said.
“The Otway Gas Project should give south-eastern Australia
gas customers the confidence that an alternative, competitively
priced gas supply will be available.”
Participants in the project are Woodside, with 51.55 per cent (Operator),
Origin Energy Resources Limited (29.75 per cent), Benaris International
NV (12.7 per cent) and CalEnergy Gas (Australia) Limited (6 per
For more information see www.woodside.com.au
Posted by Richard Price,
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