- $1.1b project to boost domestic gas production capacity by up to 20 per cent
- Increasing domestic gas production a State Government priority
New investment in domestic gas production will be increasingly important for Western Australia's economic future, Premier and State Development Minister Colin Barnett said today as he opened the Apache Energy-operated Devil Creek Gas Plant and Hub, 45km south-west of Dampier.
"As WA's third domestic gas plant, and the first new facility built in more than 15 years, Devil Creek has increased the State's domestic gas production capacity by 20 per cent," Mr Barnett said.
"By providing an additional, independent supply of gas, the Devil Creek plant will make a significant contribution to our energy security.
"Natural gas is critical to the State, as feedstock for industry, for household heating and cooking and as the energy source for almost 50 per cent of electricity production.
"With WA's population growing strongly, and its mineral production and processing industries expanding, demand for natural gas is continuing to increase.
"In addition, future development of magnetite iron ore resources will create significant new energy requirements."
The Premier said the State Government was committed to expanding domestic gas supply, both by requiring that 15 per cent of natural gas processed onshore was reserved for domestic use, and by supporting exploration and associated activities.
Mr Barnett congratulated Apache Energy and its joint venture partner Santos Ltd for their ongoing commitment to WA.
"The Devil Creek project is a $1.1billion investment project, and Apache estimates that Australian content accounts for about 60 per cent of this," he said.
"This is Apache's second domestic gas plant in WA, and both partners are also involved in many of the other oil, LNG and natural gas projects currently under way that will see production accelerate over the next decade.
"Both Apache and Santos are also very actively engaged in exploring for new oil and gas resources."
Fact File
- Devil Creek Project includes offshore wellhead platform in the Reindeer field; a 105km pipeline to shore; and gas plant
- Also includes two plants with combined production capacity of 220 terajoules of gas per day (tj/d), and estimated 1,000 barrels per day of condensate to be processed as transport fuel at BP Refinery, Kwinana, with expected life of 20-30 years
- WA's current domestic gas production capacity is about 1,000 tj/d
- In addition to existing domestic gas production at Dampier (North West Shelf Venture operated by Woodside), Varanus Island and Devil Creek (operated by Apache), future domestic gas plants include Macedon (operated by BHPB) and part of the Gorgon and Wheatstone projects (operated by Chevron)
Premier's office - 6552 5000
