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North West Shelf Venture

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North West Shelf Venture leases and infrastructure

The North West Shelf Venture, situated in the north-west of Western Australia, is Australia's largest resource development project. It involves the extraction of petroleum (mostly natural gas and condensate) at offshore production platforms, onshore processing and export of liquefied natural gas, and production of natural gas for industrial, commercial and domestic use within the state. North West Shelf gas is processed at the Woodside Energy operated Karratha Gas Plant, located on the Murujuga Cultural Landscape The North West Shelf Venture is often cited as the single largest industrial emitter for Australia according to the Clean Energy Regulator.[1]

Project

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With investments totalling $25 billion since the early 1980s, the project is the largest resource development in Australian history.[2] In the late 1980s, it was the largest engineering project in the world.[3] The Venture is underpinned by huge hydrocarbon reserves within the Carnarvon Basin, with only about one-third of the Venture's estimated total reserves of 33 trillion cubic feet (930 km3) of gas produced to date.

It was owned by a joint venture of six partners – BHP, BP, Chevron, Shell, Woodside Petroleum and a 50:50 joint venture between Mitsubishi and Mitsui & Co – with each holding an equal one-sixth shareholding.[4] Along with being a joint venture partner, Woodside is the project operator on behalf of the other participants.

On 1 June 2022, BHP's Petroleum business merged with Woodside Energy. Woodside Energy now hold one-third shareholding in the North West Shelf project.[5]

Assets

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Karratha Gas Plant

The Karratha Gas Plant was built in the 1980s, originally including multiple LNG production trains. In 2008, the facility capacity was increased to 16.3 million tonnes per year with the commissioning of a fifth, 4.4 million tonnes per year LNG production train. As well as processing gas for export, the facility supplies domestic supplies to consumers and businesses in Western Australia. The facility also processes condensate which is extracted from the gaseous hydrocarbons during processing.

The venture currently has three currently active offshore facilities. A fourth, North Rankin B is under construction:

  • North Rankin A (NRA)
Commissioned in 1984, North Rankin A was the then-largest gas production platform in the world, capable of producing 1,815 million cubic feet (51,400,000 m³) of gas per day and up to 47,400 barrels per day (7,540 m3/d) of condensate. Modifications have increased the facility's capacity by 50% and it remains one of the world's largest gas platforms.[6]
It is located 135 km north-west of Karratha and can accommodate more than 120 people. It services 25 production wells in the North Rankin and Perseus fields.
  • Goodwyn A (GWA)
At a cost of $2bn, the platform was, when commissioned in early 1995, the largest single offshore oil and gas investment ever made in Australia.
In late 2001, the Goodwyn platform was linked to the Echo/Yodel gas and condensate fields via a 23 km 12-inch (300 mm) pipeline. Hydrocarbons from the Goodwyn field are transferred via a subsea pipeline to North Rankin before being transported to Karratha for processing. It is designed for up to 30 production wells (19 currently), including five re-injection wells. It accommodates 137 people.
It has a production capacity of 32,000 tonnes of gas per day.
  • Cossack Pioneer Floating Production Storage and Off-Loading (FPSO)
The facility was commissioned in late 1995 and produces up to 50,000 barrels per day (7,900 m3/d)[7] of crude oil which is offloaded via a flexible line to oil tankers moored astern. Located 34 km east of the North Rankin A platform, it is moored to a riser turret which is connected by flexible flowlines to subsea production wells at the Wanaea, Cossack, Lambert and Hermeson gas fields.
It has a storage capacity of 1.15 million barrels (183,000 m3) of oil and a production capacity of 150,000 barrels (24,000 m3) of oil per day.
In May 2008, Woodside announced plans to replace the 13-year-old vessel with a view to extending oil output to 2025-2030.[7]

The condensate is transported to the Burrup Peninsula (Murujuga) onshore facility on the mainland 130 km away by two 42-inch (1.1 m) and 40-inch (1.0 m) undersea pipes.

Other assets include:

  • LNG and condensate loading facilities at Withnell Bay at the Karratha Gas Plant,Karratha including jetties, LNG storage tanks and other infrastructure, and supported by Dampier Port Authority.[8]
  • A fleet of nine purpose built LNG cargo ships. The ships are powered using gas vapour from the storage tanks on board which is used to run steam turbines. Each of the ships is equipped with four spherical tanks giving a total capacity of 125,000 cubic metres (138,500 cubic metres in the case of the most recently delivered Northwest Swan) and utilise docking facilities at the Karratha gas plant's Withnell Bay terminal. A subsidiary company, North West Shelf Shipping Service Company Pty Ltd manages the shipping operations.

In March 2008, the partners approved a A$5 billion North Rankin 2 project which will underpin supply commitments to customers in Asia beyond 2013.[7] The project will recover remaining low pressure gas from the ageing North Rankin and Perseus gas fields using compression. It will include the installation of a new platform (North Rankin B) which will stand in about 125 metres of water and will be connected by a 100-metre bridge to the existing North Rankin A platform.[9]

Production and sales

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The first LNG shipments went to Japan in 1989. Two hundred shipments per year (about one shipment every 1.5 days) in the purpose-built LNG carriers totalling more than seven million tons are made around the world. Markets include sales to long term customers in Japan and spot buyers in China, Spain, South Korea and the United States.[10]

To date, the venture has produced more than 1000 cargoes of light crude oil (natural gas condensate). Condensate is sold on the international energy market.

In 2002, a contract was signed to supply 3 million tonnes of LNG a year[11] from the North West Shelf Venture to China. The contract was worth $25 billion: between $700 million and $1 billion a year for 25 years.[12][11] The price was guaranteed not to increase until 2031, and, as international LNG prices were increasing, by 2015 China was paying one-third as were Australian consumers.[11]

The venture is Western Australia's largest single producer of domestic gas providing about 65% of total State production.[2] Pipeline gas is processed at the consortium's Karratha facility, and transported to customers in southern Western Australia via the 1530 km Dampier to Bunbury Natural Gas Pipeline. A subsidiary company, North West Shelf Gas Pty Ltd markets the domestic gas component to customers in Western Australia through private contracts and sales to Alinta.[13]

Emissions Controversy

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The gas produced by the North West Shelf project is some of the lowest carbon gas energy on earth, which notably is 0.1% CO2. Utilizing the resource will aid several Asian countries in meeting their net 0 targets under the Paris agreement.

In 2019, Woodside, and the Joint Venture partners, Chevron, Shell, BP, and Mimi, proposed to extend the life of the North West Shelf project, including the Karratha Gas Plant.[14] The proposal is to extend the life of the fossil fuel project by another 50 years.

The North West Shelf gas project, operated by Woodside outside Karratha in Western Australia's northwest, emerged as Australia's largest industrial emitter in 2020–21, as reported by the Clean Energy Regulator.[15]

The independent Environmental Protection Authority of Western Australia, advising the state government, has recommended extending the project's operation until 2070.[16]

Engineering heritage award

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The first two phases of the project received an Engineering Heritage International Marker from Engineers Australia as part of its Engineering Heritage Recognition Program.[17]

See also

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References

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  1. ^ Kruijff, Peter de (2022-06-30). "Watchdog greenlights Australia's most polluting project to run to 2070". The Sydney Morning Herald. Retrieved 2024-06-08.
  2. ^ a b "North West Shelf > overview". Woodside Energy. Archived from the original on 2008-05-25. Retrieved 2008-06-14.
  3. ^ Murray, Robert (1991). From the Edge of a Timeless Land: A History of the North West Shelf Gas Project. Allen & Unwin, Sydney. p. 188. ISBN 0-04-442295-4.
  4. ^ "Participants". North West Shelf Gas. Retrieved 1 November 2022.
  5. ^ "BHP Petroleum merger with Woodside". 2022. Retrieved 5 June 2024.
  6. ^ (2004) North Rankin A - life extension project. North Rankin `A' Platform (North West Shelf, W.A.)Trunkline, June 2004, supplement
  7. ^ a b c "NW Shelf Venture Agrees to Replace Cossack Oil Production Ship". Bloomberg.com. Retrieved 2008-06-14.
  8. ^ "Withnell Bay LNG Jetty". Dampier Port Authority. Archived from the original on 2008-03-25. Retrieved 2008-06-15.
  9. ^ "North West Shelf Venture Approves North Rankin 2 Project" (PDF). Woodside Petroleum Ltd ASX announcement. 31 March 2008.
  10. ^ "North West Shelf Venture". Hydrocarbons Technology. Retrieved 2008-06-14.
  11. ^ a b c The Age, 30 September 2017, How Australia blew its future gas supplies by Tony Wright
  12. ^ smh.com.au, 9 August 2002, Gas boom as China signs $25bn deal by Tom Allard and John Garnaut
  13. ^ "About NWSG". North West Shelf Gas Pty Ltd. Archived from the original on 2008-07-19. Retrieved 2008-06-14.
  14. ^ "North West Shelf Project Extension | EPA Western Australia". www.epa.wa.gov.au. Retrieved 2024-06-08.
  15. ^ "Australia's 10 highest greenhouse gas emitters 2020-21 | Clean Energy Regulator". cer.gov.au. Retrieved 2024-06-08.
  16. ^ Kruijff, Peter de (2022-06-30). "Watchdog greenlights Australia's most polluting project to run to 2070". The Sydney Morning Herald. Retrieved 2024-06-08.
  17. ^ "North West shelf Natural Gas Project -". Engineers Australia. Retrieved 2020-05-06.

Further reading

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  • Trunkline : the magazine for Woodside people. Perth, W.A. Published for staff of Woodside group of companies by the Government and Public Affairs Division. Vol. 1, no. 1 (Feb. 1992)- Trunkline (Perth, W.A)
  • Murujuga's rock art is being destroyed - where is the outrage? Published by University of Western Australia, Professor of Archaeology (World Rock Art) at the UWA School of Social Sciences Benjamin Smith, Rock Art Australia Ian Potter Kimberley Chair at UWA Joakim Goldhahn and Chair in Rock Art Research and Director of the Place, Evolution and Rock Art Heritage Unit (PERAHU) at Griffith University Paul S.C.Taço originally appeared in The Conversation.[1]