Woodside has taken a final investment decision on the pipeline component of the Pluto-North West Shelf (NWS) Interconnector in Western Australia.
In addition the company has entered into contractual arrangements with DDG Operations for the construction of the pipeline and its ongoing operation and maintenance.
The Pluto-NWS Interconnector will connect Pluto LNG and the NWS Project’s Karratha Gas Plant (KGP) and is the first component of the infrastructure needed to transport gas between the two facilities.
Construction and operation of the pipeline is subject to regulatory approvals by the State of Western Australia and finalization of commercial arrangements with the Pluto and NWS joint venture participants.
Woodside CEO Peter Coleman said: “Our vision for the Burrup Hub will unlock the future value of infrastructure which has been supplying gas to Western Australia and the world safely and reliably for more than 30 years. The Interconnector between the Pluto LNG and NWS facilities will enable us to optimize the processing of gas from our offshore fields.
“Delivering the proposed Burrup Hub will help underpin Western Australia’s economic strength for decades into the future. It will provide thousands of jobs, opportunities for local suppliers and tax and royalty revenues to Western Australia.”
Consultants ACIL Allen have estimated the Burrup Hub would generate an average of more than 4,000 jobs per annum in Australia over coming decades, with more than 1,900 of those located in Karratha and Broome.
Woodside is targeting ready for start-up of the Pluto-NWS Interconnector in the first half of 2022.
DDG Operations is part of the Australian Gas Infrastructure Group, the operator of the Dampier to Bunbury Natural Gas Pipeline.