A unit of Japan’s Mitsui & Co, along with its partner Beach Energy, have started building the second stage of the Waitsia gas project in Western Australia.
To mark the construction start of the second stage, Mitsui E&P Australia, Beach, and contractor Clough held a groundbreaking ceremony on Friday in the northern Perth Basin, near the town of Dongara.
As previously reported, Mitsui and Beach have in December taken a final investment decision on the expansion project.
Prior to that, the partners signed third-party tolling deals with Australia’s Woodside and its North West Shelf LNG venture participants.
Beach also recently signed a heads of agreement to supply LNG to a unit of energy giant BP. BP Singapore would buy about 3.75 million tonnes of Beach’s expected LNG volumes from the second stage of the Waitsia gas project.
The Waitsia gas field located is one of the top five largest gas fields ever discovered onshore in Australia.
The second stage involves further development of the gas field, with more wells and a new production facility capable of producing 250 TJ/day.
Moreover, the new supply will go to Woodside’s Karratha LNG plant but also for domestic gas.
The partners expect to start production from Waitsia Stage 2 in the second half of 2023.