Environmental approval for East Spar offshore gas field

3/10/95

Environmental approval has been given for the development of the North-West's East Spar offshore gas field, clearing the way for construction to start on the unique $250 million joint venture.

Resources Development Minister Colin Barnett said the environmental approval signalled another major milestone for the project, which was set to become Australia's first 'fully automated' subsea gas-gathering system.

Mr Barnett said the project would involve a 65 km subsea pipeline being built to tap gas directly from the source of the gas find to the gas-gathering facilities at Varanus Island, 50km west of Barrow Island.

The unique feature of the project was that the gas gathering would be based on a fully automated subsea system.

A major feature of the system was that it represented another important development in containing the costs of offshore gas projects and brought another significant source of gas into the competitive market place.

The Minister said the East Spar gas field - discovered in 1993 - was one of the first projects to become viable with the deregulation of the energy market at the start of this year.

He said the field would supply gas for the Gas-to-the-Goldfields pipeline project, allowing 37 terajoules per day of gas to be piped to Western Mining Corporation's operations in the Goldfields.

The total project contained about 10 billion cubic metres of gas and also had a high condensate yield estimated to be about 25 million barrels.

The first production from East Spar was scheduled to commence by October next year, in line with the Gas-to-the-Goldfields pipeline project.

Mr Barnett said the deregulation of the energy market had provided an important stimulus for the development of the project.  Gas would be piped ashore to the Gas-to-the-Goldfields pipeline or, if and when other contracts were signed, into the Dampier to Bunbury pipeline.

Western Mining, as well as being a participant in the pipeline project, would also build four gas-powered electricity generating stations, using gas from the East Spar project, along the Gas-to-the-Goldfields pipeline route for mining and mineral processing.

The gas gathering operation would involve two 120 terajoules/per day plants, to be built next to the existing gas gathering facilities used for the Harriet joint venture on Varanus Island.

Environment Minister Peter Foss said key environmental conditions and commitments made by the company were designed to reduce impacts on the fauna and flora habitat of Varanus Island, which was a C-class reserve.

Mr Foss said another key issue of the environmental assessment was the disposal of waste water from the processing plant.

He said that, following community consultation, the environmental approval stipulated that the company would be permitted to dispose of strictly limited amounts of waste water down existing shallow wells on Varanus Island, after treatment in the Harriet Joint Venture plant.

This process would be closely monitored and if any unacceptable impacts were likely, the company would be required to use other disposal methods.

Equally, the undersea pipeline would be positioned to avoid any coral patch reefs, mangroves and other sensitive resources, the Minister said.

Media contact: Carolyn Vicars  222 9699 / Peter Harris 321 2222