Exxon, BHP to invest $291 mln to expand gas output off Australia

Signage is seen at an Exxon fuel station in Brooklyn, New York Metropolis, U.S., November 23, 2021. REUTERS/Andrew Kelly

MELBOURNE, March 17 (Reuters) – Exxon Mobil Corp (XOM.N) and BHP Group (BHP.AX) mentioned on Thursday they may go forward with a challenge to spice up fuel output from their Gippsland Basin Kipper discipline off southeast Australia, which might assist fill a looming fuel scarcity within the native market.

Exxon’s Esso Australia mentioned the challenge would value about A$400 million ($291 million) to extract a further 200 petajoules (PJ) of fuel over the approaching 5 years, including that about 30 PJ can be produced subsequent yr.

The nation’s regulators have warned that jap Australia faces a fuel shortfall from 2026, largely as a result of the ageing fuel fields within the Gippsland Basin Joint Enterprise, which has been the most important provider into the marketplace for many years, are drying up. learn extra

Esso operates the three way partnership in a 50-50 partnership with world miner BHP.

The additional manufacturing from the Gippsland Basin will come on-line forward of 5 proposed liquefied pure fuel (LNG) import terminals, trying to serve the identical market. Solely a type of has begun preliminary building work. learn extra

BHP’s stake within the Gippsland Basin three way partnership is ready to go to Woodside Petroleum (WPL.AX) pending a vote of the Australian firm’s shareholders in Might on a merger with BHP’s petroleum enterprise. learn extra

BHP will proceed to contribute its 50% share of the Gippsland Basin Joint Enterprise’s growth spending for so long as it stays a stakeholder, a BHP spokesperson mentioned.

Esso Australia additionally mentioned it was advancing funding selections to start manufacturing from the Turrum discipline in Bass Strait, offshore Victoria.

($1 = 1.3723 Australian {dollars})

Reporting by Sameer Manekar in Bengaluru and Sonali Paul in Melbourne; Modifying by Uttaresh.V and Rashmi Aich

: The Thomson Reuters Trust Principles.