WA’s gas supply boosted 20 per cent

Colin Barnett officially opened the Apache Energy-operated Devil Creek Gas Plant and Hub at Devil Creek on February 25th. The $1.1 billion gas operation, 40km south of Dampier, is the state’s first new domestic gas plant in more than 15 years, and increases the State’s domestic gas production capacity by 20 per cent.

The Devil Creek operation includes an offshore wellhead platform in the Apache-operated Reindeer gas field, a 105km pipeline to shore, and the gas plant. Gas processed at the plant will be fed through to the Dampier to Bunbury pipeline to supply the domestic gas market.

Devil Creek joins the North West Shelf operation and the Varanus Island project as suppliers of gas to the local market. Currently Western Australia consumes around 970 terajoules of gas a day. Devil Creek, at full production, will contribute a further 220 terajoules, the bulk of which will be supplied to industry. The operation will also produce 1000 barrels of condensate a day.

Premier Colin Barnett said the opening of Devil Creek will make a significant contribution to WA’s energy security. It also marked a milestone in WA’s emerging magnetite iron ore market, providing natural gas to the Sino Iron project that is the first, large-scaled project to transform low-grade magnetite iron ore into an export product. The project will also supply gas to Minara Resources’ Murrin Murrin nickel mine.

Colin Barnett said “Natural gas is critical to the State, as feedstock for industry, for household heating and cooking and as the energy source for almost 50 per cent of electricity production.

The State Government was committed to expanding domestic gas supply, by requiring 15 per cent of natural gas processed onshore to be reserved for domestic use, and by supporting exploration and associated activities.” Future domestic gas plants include Macedon (operated by BHPB) and part of the Gorgon and Wheatstone projects (operated by Chevron).