Fertiliser and industrial chemicals manufacturer Incitec Pivot is closer to its ambition of producing gas for its own needs with the restart of its 50:50 joint venture drilling programme with Central Peroleum.
The company has been working with Central Petroleum to develop coal seam gas opportunities in a 77 square kilometre site at Project Range in the Suart Basin and Dukas 1.
Like all east coast manufacturers, Incitec Pivot has seen gas prices triple since 2014, and set it on a course of developing its own resources to add to the eastern Australian domestic supply of gas.
However the project was paused in March following operational and financial uncertainties caused by the Covid-19 pandemic.
Now the restart will progress activities including a three-well appraisal pilot programme and approvals and permits needed to reach a final investment decision.
Such a decision is targeted for the end of 2021, with development anticipated to begin immediately after that.
A 2019 exploration programme confirmed the prospect will be able to produce significant quantities of gas destined for the domestic market, with a certified 270 Pjs of 2C resources at Project Range.
The project could compromise 143 producing wells over the like of the field, with gas processed on site and transported to market via a new pipeline connecting to the Roma-Brisbane pipeline..
Central Petroleum CEO Leon Devaney said: “The new gas sale agreement and restructured finance facility…combined with continued resilience in term gas markets, give us the flexibility and confidence to restart Range.
“This is a major area of growth for Central which we believe will be a very competitive new source of gas for the east coast market when the project comes onstream in 2023.”
Picture: Central Petroleum
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