The Waitsia Gas Project, a collaboration between Beach Energy and Mitsui E&P Australia, has encountered significant challenges, notably a downgrade in gas reserves and the necessity to source alternative gas supplies for processing.Reserves Downgrade and Project DelaysIn August 2024, Beach Energy announced a substantial reduction in its proven and probable (2P) gas reserves, decreasing from 255 million barrels of oil equivalent (boe) to 205 million boe—a 20% decline. This adjustment was primarily due to a re-evaluation of assets, including the Waitsia field, and lower-than-expected performance at other sites. Additionally, the Waitsia Stage 2 project has experienced delays, with first gas production now anticipated in early 2025. Alternative Gas SourcingTo address the shortfall and ensure the viability of the Waitsia Gas Plant, the joint venture is exploring options to process gas from nearby fields. Notably, Hancock Prospecting's recent acquisition of the Lockyer/North Erregulla gas project in the Perth Basin presents a potential opportunity. Hancock aims to expedite development and bring gas to market promptly, which could involve collaboration with existing infrastructure like the Waitsia Gas Plant.
Integrating gas from West Erregulla into the Waitsia Gas Plant could also provide mutual benefits: it would supply the Waitsia facility with the necessary gas to operate at optimal capacity and offer a ready processing solution for West Erregulla's production. Such collaboration would enhance the efficiency of gas processing infrastructure in the Perth Basin and contribute to a more stable domestic gas supply.
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