Hess Corporation announced that its Australian subsidiary, Hess Exploration Australia Pty Ltd, has signed a Letter of Intent (LOI) with the North West Shelf (NWS), to liquefy natural gas.
Liquefaction facilities
Hess will develop natural gas discoveries in its deepwater permits offshore northwestern Australia and, subject to agreements, toll the production through existing NWS processing and liquefaction facilities in Karratha, Australia. Hess would then market LNG to customers in Asia Pacific.
NWS is a joint venture between BHP Billiton Petroleum (North West Shelf) Pty Ltd, BP Developments Australia Pty Ltd, Chevron Australia Pty Ltd, Japan Australia LNG (MIMI) Pty Ltd, Shell Australia Pty Ltd and Woodside Energy Ltd (Operator). Hess and NWS plan to conduct joint engineering studies and further progress commercial discussions.
Comments
Commenting on the agreement, President and COO, Greg Hill, said: “This arrangement would bring together Hess’ strong deepwater drilling and development capabilities with NWS’s proven track record in natural gas processing and liquefaction. The combination provides an attractive option for Hess to commercialize its important Equus natural gas resource in a manner that delivers secure, reliable energy supplies into Asia Pacific LNG markets and creates value for our shareholders.”
Hess holds 100% interests in both the WA-390-P and WA-474-P permits that contain the Equus fields. These permits cover over 1 million acres and are located approximately 115 miles off the northwest coast of Australia in water depths of approximately 3600 ft. An Equus sanction decision is not expected before 2017.
Adapted from press release by Katie Woodward