Mereenie and Palm Valley projects back online

Central Petroleum’s Mereenie Facility Upgrade and Palm Valley Restart Projects have been brought into production.

Central had fast tracked the Northern Territory projects to maximise gas sales when commercial operations begin for the Northern Gas Pipeline (NGP) at the end of the year.

The company reported all key processing and production equipment is installed and running, with the exception of the field boost compressor at Mereenie, which is currently undergoing test running.

Once the field boost compressor is fully operational, the Mereenie Gas Field will be capable of delivering 44 TJ/d of sales gas, while the Palm Valley facility now has 15 TJ/d of sales gas capacity.

Additionally, Central’s gas sales agreement with chemical and fertiliser producer Incitec Pivot will now commence between 29 December 2018 and 10 January 2019, dates which are reflective of the NGP’s commencement of commercial operations.

Incitec recently disclosed that failure to find another gas deal after the agreement with Central concludes at the end of 2019 could force a shutdown of their Brisbane fertiliser plant.

For more information visit the Central Petroleum website.

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