Orbost Gas Plant deal completed
Cooper Energy and APA Group have completed the transaction which will see APA acquire, upgrade and operate the Orbost Gas Plant in Victoria.
The transaction is a key component of Cooper’s Sole Gas Project, which will bring a new source of gas supply to south east Australia from 2019.
The agreement also provides for the plant to process gas from Cooper’s adjacent Manta gas field, and potentially other fields.
The expected total cost of the project is $605 million, comprising $250 million for the onshore component and $355 million for the offshore development.
“The Orbost Gas Plant transaction has brought Australia’s largest gas infrastructure company to the Gippsland Basin, which has been the largest supplier of gas to the south east Australian domestic gas market,” said Cooper Managing Director David Maxwell.
“[APA Group’s] involvement has been pivotal to the Sole Gas Project proceeding and Cooper Energy looks forward to working with APA to bring new gas supply to south east Australia.”
Cooper and APA are currently working towards first phase commissioning of the project, beginning in the first quarter of 2019.
The upstream section of the Sole Gas Project was taken to 20.2 per cent complete at September, and with planning, procurement and construction activities advancing, the project remains well within budget.
Key milestones and status points for the upstream project include:
- Completion of the horizontally directional drill shore crossing for the control umbilical. The production pipeline shore crossing work is expected to be completed in the December quarter
- Subsea line pipe (65 km) manufacture has been completed and the pipe is en route to Australia
- Manufacture of the subsea wellhead trees is advancing, with assembly proceeding in Singapore and the United Kingdom (UK). The two trees are expected to be delivered in December and January
- Manufacture of the control umbilical by Technip is proceeding in the UK
- Consultation meetings are being held with local stakeholders in the 2018 drilling and offshore construction campaign, including fishing industry representative bodies
- Preparations for the commencement of well construction activities using the Diamond Offshore Ocean Monarch drilling rig in the March quarter 2018.