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DDG secures approval for gas storage facility

DDG secures approval for gas storage facility

DUET Group subsidiary DDG Tubridgi has secured approval from the Western Australia Government to build the state’s largest gas storage facility near Onslow in the state’s North West.

With an estimated construction cost of $69 million, the facility is expected to be operational by June and will use DDG’s depleted Tubridgi onshore gas reservoir, approximately 30 km from Onslow.

The WA Department of Mines and Petroleum’s Executive Director Petroleum Jeff Haworth said the project would play an important role in enhancing energy security in WA when fully operational.

“The Tubridgi facility will enable banking of unused gas to cover planned production facility outages,” said Mr Haworth.

CITIC Pacific, developer and operator of the Sino Iron magnetite project at Cape Preston, will be the foundation customer under a 10-year gas storage agreement with DDG with options for a further five years.

DDG Tubridgi Pty Ltd is currently negotiating with other companies in the region to sign additional contracts.

The facility has a storage capacity of around 42 PJ with daily injection and withdrawal rates of around 50 TJ/d.

The facility will be strategically located in close proximity to the Chevron-operated Wheatstone and BHP-operated Macedon domestic gas production facilities, and will be connected to the Dampier to Bunbury Natural Gas Pipeline by existing gas transmission laterals.