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NORTH WEST SHELF VENTURE PRODUCES FIRST LNG FROM TRAIN 5 PRODUCTION FACILITY

1 September, 2008

The North West Shelf Venture's fifth LNG processing train located at its Karratha Gas Plant in Western Australia is now fully operational and producing LNG for export to customers around the world including Japan, China and South Korea.

With Train 5 now on line and contributing up to 4.4 million tonnes of LNG annually, the Woodsideoperated North West Shelf Venture's total annual production capacity has been boosted to 16.3 million tonnes.

The A$2.6 billion new production facility includes a fifth LNG processing train, a jetty extension and second LNG loading berth, two additional power generation units, a third fractionation unit, a new fuel gas compressor, an acid gas removal unit and a third boil-off gas compressor, taking total investment in the North West Shelf Venture assets to more than A$25 billion.

Woodside's Executive Vice President North West Shelf, Eve Howell, said the modular construction of Train 5 was a world first and the project's completion marked a significant milestone in the ongoing expansion of what was the first LNG plant ever built in Australia.

"Train 5 has been safely and successfully completed on time and at a highly competitive cost in an extremely constrained resources environment. This remarkable achievement is testament to the focus and commitment of the project team in delivering this additional production infrastructure," Ms Howell said.

"The Phase V development demonstrates the ongoing high level of investment that the North West Shelf Venture participants continue to commit to the project, and highlights the importance of Australia remaining an attractive investment destination."

LNG has the potential to make a substantial contribution to the reduction of global greenhouse emissions. In contrast to alternative fuelled power generation, this scale of project has the potential to reduce global emissions by 12 million tonnes of carbon dioxide, or the equivalent of taking approximately three million cars off the road annually.

First LNG production from Train 5 is ahead of the project schedule. Train 5 additional capacity will become part of the North West Shelf Venture's integrated system and will support delivery to its customers.

The six equal participants in the North West Shelf Project are BHP Billiton Petroleum (North West Shelf) Pty Ltd, BP Developments Australia Pty Ltd, Chevron Australian Pty Ltd, Japan Australia LNG (MIMI) Pty Ltd, Shell Development (Australia) Pty Ltd and Operator Woodside Energy Ltd. The China National Offshore Oil Corporation is also part of the North West Shelf Venture but does not have an interest in its infrastructure.

FAST FACTS: Train 5 LNG production facility

  • A fifth onshore LNG production facility located at the North West Shelf Venture's Karratha Gas Plant in Western Australia.
  • Project cost: A$2.6 billion.
  • Takes total investment in the North West Shelf Venture to over A$25 billion.
  • The Phase V expansion includes:
    - a fifth LNG processing train - a world first in modular construction;
    - a jetty extension and second LNG loading berth;
    - two additional power generation units;
    - a third fractionation units;
    - a new fuel gas compressor;
    - an acid gas removal unit; and
    - a third boil-off gas compressor.
  • During construction:
    - 83,000 cubic metres of earth was moved during site preparation;
    - 17,600 cubic metres of structural concrete and 32,200 cubic metres of concrete paving was set;
    - 478.3km of underground cable was laid;
    - 2,455 tonnes of stick build structural steel and 46.12km of pipe was erected;
    - 75 pre-assembled modules weighing 24,000 tonnes were installed, the heaviest single module weighed 1,835 tonnes; and
    - 1,800 people were employed at the peak of construction activity.
  • Is expected to produce 4.4Mtpa, boosting the Venture's LNG production capacity to 16.3Mtpa.
  • Will process gas from the Venture's North Rankin A, Goodwyn A and Angel offshore production platforms.
  • First LNG production from Train 5 is ahead of the project schedule.
  • The project has contributed approximately A$1.6 billion in expenditure that has directly benefited Australian industry.

Media Enquiries

Jessica Bowker
W: (08) 9348 4390
M: (0420) 717 714

Investment Enquiries

Mike Lynn
W: (08) 9348 4283
M: (0439) 691 592



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