The company said it was yet to complete the performance test required to meet commercial operations under the agreement with Sole Gas Project operator Cooper Energy, consequently delaying revenues and reducing its earnings estimate for the financial year by up to 3.2 per cent.
With the Orbost plant design based on proprietary technology for the removal of hydrogen sulphide, APA said it was working with the providers of that technology to increase production levels from 40 TJ/day to 68 TJ/day as soon as possible.
“APA’s focus continues to be to ensure that the Orbost Gas Processing Plant is commissioned safely and to a high standard of quality and operating performance, and APA will advise of the timing of commercial operations in due course,” said APA CEO and Managing Director Rob Wheals.
Originally intended to be operational in late 2019, the Orbost plant will process gas from Cooper’s Sole gas field in Victoria’s offshore Gippsland Basin.
Outside of Orbost, Mr Wheals said APA was continuing to stick to company process despite challenges presented by the COVID-19 pandemic.
“This will ensure that our assets, people and communities remain safe such that production, mining, heating, cooling, cooking and other basics of life can continue as usual.”
For more information visit the APA website.
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