A unit of Japan’s Mitsui & Co, along with its partner Beach Energy, has taken a final investment decision on the second stage of the Waitsia gas project in Western Australia.
The expansion project has a price tag of A$768 million ($583 million).
The move follows the signing of third-party tolling deals with Australia’s Woodside and its North West Shelf LNG venture partners.
Additionally, Mitsui E&P Australia and Beach signed commercial deals with the WA government and the Australian Gas Infrastructure Group.
This allows the Waitsia project to now move to the next phase of development, subject to relevant government and regulatory approvals, Mitsui said.
Moreover, this includes the formal environmental impact assessment approval, which is in the final phase, it said.
Detailed engineering and procurement work will now ramp up with initial construction activities planned to start from July 2021.
Mitsui, that holds a 50% interest in the Waitsia through AWE, expects production to start in the second half of 2023.
The Waitsia gas field located in the Perth Basin 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.
The new supply will go the Karratha LNG plant but also for domestic gas.