Mitsui E&P Australia has made a final investment decision subject to necessary government approvals, as the operator of the Waitsia Gas Project Stage 2 Development (“Waitsia Stage 2”).
This milestone was reached following the Waitsia Joint Venture finalising and signing key commercial agreements with the North West Shelf Joint Venture (NWS), the Western Australian State Government and the Australian Gas Infrastructure Group (AGIG).
This allows the Waitsia project to now move to the next phase of development, subject to relevant government and regulatory approvals. This includes the formal environmental impact assessment approval, which is in the final phase.
Detailed engineering and procurement work will now ramp up with initial construction activities planned to commence from July 2021. Production is expected to commence in the second half of 2023.
During the construction phase, an average of 125 workers will be employed. The construction workforce will grow over time and peak at 200, before construction winds down in preparation for the start of operation. The long-term operational workforce will be around 12 to 15 people. In addition, some 20-30 Perth based operational and engineering support persons will be required throughout the life of the project.
The project will generate royalty payments to the Western Australian Government and opportunities for local spending during the three-year construction phase and during the following operations phase.
In alignment with the Western Australian State Government greenhouse gas policy, approximately 60% of the project’s greenhouse gas emissions are planned to be reduced or offset from the start of production.
Waitsia Stage 2 will increase competition, supply diversity, and improve energy security by offering a new and low risk onshore resource.
Waitsia Stage 2 has also received government approval to export LNG until 2028, which will be done through the North West Shelf facilities.
As the construction phase nears commencement, additional information will be provided to ensure minimal disruption to the local community and local businesses.
For any media enquiries, please contact: patrick@GRAPartners.com.au