Commercial gas sales from Stage 1A of the Waitsia gas project have commenced and the development was delivered on time and within the approved budget of $18 million. A range of Mid West service providers helped play a key role in this achievement.
The Waitsia gas project (AWE 50% interest) is Operated by AWE and located approximately 16.5 km east-southeast of Dongara in production licence L1/L2. Stage 1A involved installing new infrastructure to connect the Waitsia-1 and Senecio-3 gas wells to the upgraded Xyris Production Facility. During Stage 1A, approximately $6 million of service contracts was awarded to Mid West businesses that provided core services such as pipeline construction, earthworks, concreting and electrical and instrumental construction.
The Xyris Production Facility has been successfully commissioned and production capacity of 10 TJ/day has been achieved. Gas is being delivered via the Parmelia Gas Pipeline to Western Australian consumers.
AWE’s Managing Director and CEO, David Biggs, said, “The first gas sale from the Waitsia gas project represents a major milestone for AWE and our ongoing presence in the Mid West.”
“The Waitsia gas field was discovered less than two years ago and we moved quickly to appraise the asset. With the help of Mid West businesses we completed engineering and construction work on schedule and within budget.
“This further shows our commitment to supporting the regional economy and community, by wherever practical, partnering with local businesses. We look forward to continuing business partnerships like these as we progress our field development planning and required approvals of the Waitsia gas field.”
AWE is now focused on moving towards Stage 2, a full field development phase that would increase production capacity up to 100 TJ/day. The development concept selection process for Waitsia Stage 2 has begun and two new exploration/appraisal wells are planned to be drilled in calendar year 2017.
The Waitsia gas field, when fully developed, is anticipated to produce approximately 10 per cent of Western Australia’s daily domestic consumption and will deliver substantial royalties to the WA government over the project’s lifecycle as well as ongoing local business opportunities.