ExxonMobil Australia, Woodside approve $221m for Turrum phase three gas project

ExxonMobil Australia, in partnership with Woodside Energy, has announced the final investment decision (FID) for the Turrum phase three gas project.

The joint venture (JV) aims to tap into underdeveloped gas resources in the Gippsland Basin with an investment of A$350m ($221m).

The project, which is expected to address potential gas shortages on Australia’s east coast, involves drilling five new wells in the Turrum and North Turrum gas fields.

The decision comes at a critical time as Australia’s competition regulator has warned of a gas supply shortfall from 2027, which could necessitate gas imports due to structural declines and uncertainties in future investments.

In an emailed response to Reuters, ExxonMobil Australia chair Simon Younger said: “While depletion of the Gippsland Basin is inevitable, projects such as Turrum will ensure Bass Strait continues to produce gas for the domestic market past 2030.”

The Gippsland Basin JV is shared equally between Esso Australia Resources and Woodside Energy (Bass Strait), with Esso Australia taking the lead in operations.

In a separate statement, Woodside’s executive vice-president and chief operating officer for its Australian operations, Liz Westcott, was quoted by the news agency as saying: “The Turrum Phase 3 project, and the recently approved Kipper 1B project, will unlock additional gas that is needed to avoid future shortfalls.

“Every molecule of gas Woodside supplies from the Bass Strait fields is sold into the Australian domestic market for local manufacturers, power generators and homes.”

Also, ExxonMobil affiliate ExxonMobil LNG Asia Pacific has entered a long-term sale and purchase agreement for the supply of liquefied natural gas (LNG).

According to the agreement, ExxonMobil will purchase approximately 1.5 million tonnes per annum of ARC’s LNG from the Cedar LNG project.

“ExxonMobil Australia, Woodside approve $221m for Turrum phase three gas project” was originally created and published by Offshore Technology, a GlobalData owned brand.

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