Tuesday, September 15, 2009

GROUND BREAKING SIGNALS COMMENCEMENT OF NEW WA DOMESTIC GAS HUB


Western Australian Energy Minister, Hon. Peter Collier MLC today officiated at the ground breaking of the site of the new Devil Creek Domestic Gas Hub, south of Karratha.

The Devil Creek Development Project (DCDP) is a greenfield domestic gas development project 45 km southwest of Dampier in Western Australia.  Apache Energy is operator, with Santos Limited as Joint Venture partner.

Natural gas will initially be extracted from the offshore Reindeer gas field and brought to the mainland via a 110 km offshore and onshore gas supply pipeline to Devil Creek.

The raw natural gas will be processed and then supplied into the Dampier to Bunbury Natural Gas Pipeline. A second commercial product derived from the gas stream will be condensate.

Devil Creek will initially provide up to 110 Terajoules (TJ/d) per day for the Western Australian domestic gas market and has been designed to process up to 220 TJ/d of natural gas.

When fully developed, Devil Creek is expected to contribute approximately 20 per cent to the State’s domestic gas supply.

John Holland Group Pty Ltd was last month awarded the $160 million contract for construction of the onshore phase of the Project.

According to Apache Energy Managing Director, Mr John Bedingfield, natural gas from Devil Creek will be an important new source of domestic energy supply for Western Australia, further diversifying the sources of natural gas production and reinforcing the energy security of the State.

“This is an important day for Apache and Western Australia as we symbolically commence construction of Western Australia’s third domestic gas hub whilst expanding the resource development frontier south of Karratha,” Mr Bedingfield said.

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