Esso to replace Gippsland pipeline

The pipeline will allow the continued safe delivery of crude oil and condensate, and ensure the delivery of natural gas from the offshore Gippsland Basin to domestic consumers.

Pending regulatory approval, the construction of the replacement pipeline is expected to begin in late 2015.

“With an approximate project cost of $A400 million, the replacement pipeline represents another significant investment in the continuation of our Gippsland operations, which have provided crude oil, condensate, LPG and natural gas to the Australia market since operations began in 1969,” ExxonMobil Australia Chairman Richard Owen said.

Mr Owen said it is anticipated that, at its peak, the project will generate approximately 500 jobs, as well as deliver additional indirect employment opportunities.

The new pipeline will replace the existing 700 mm pipeline, which was constructed in 1969 and underwent a partial replacement in 1980 but is approaching the end of its operational life.

The pipeline has been fully funded by Esso and its Gippsland Basin Joint Venture partner BHP Billiton.

Each company holds a 50 per cent participating interest in the joint venture, with Esso as operator.

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