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Waitsia stage 2 enters FEED

Written by  Wednesday, 07 June 2017 22:56
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Operator AWE and its joint venture partner Origin Energy have agreed to commence the design competition phase of front-end engineering design (FEED) for Stage 2 of the Waitsia gas project.

Located in the production license L1/L2 in the Perth basin of Western Australia, Waitsia is a 50:50 partnership between both companies.    

The design competition for Waitsia Stage 2 facilities will include a gas plant capable of processing 100 TJ/d, CO2 extraction, collection hubs, and flow lines.

The four contractors selected to proceed to the design competition, which will commence immediately, are Quanta/Suez (EPC), ATCO Australia (BOO), SNC-LAVALIN (EPC/BOO), and Clough (EPC).

AWE is targeting completion of all phases of FEED by the end of 2017, prior to achieving a final investment decision.

“A design competition is the best way for the Waitsia joint venture to compare the various aspects of EPC [engineering procurement construction], and BOO [build own operate] delivery methods while at the same time ensuring a high degree of certainty around the capital cost component,” said David Biggs, CEO of Sydney-based AWE.  

“In addition, AWE is currently drilling the Waitsia-3 appraisal well – the first of a two well program which will facilitate a review of Waitsia reserves – and we are negotiating gas sale arrangements with a number of potential customers.

“When developed, Waitsia will provide around 10% of Western Australia’s gas demand. Recent market shows that the Western Australian gas market is tightening, with new sources of gas required to meet domestic demand. Waitsia offers potential customers increased competition, diversity of supply, and improved security of supply by offering a lower risk onshore supply chain,” he added.

Earlier this week, AWE announced that the Waitsia-3 appraisal well was at 2782m measured depth below rotary table (MDRT) and preparing to drill ahead. The well will be drilled in a 216mm hole to the primary target, following the installation of a 244mm intermediate casing at 2779m MDRT.

Waitsia-3 was spudded on 19 May and is forecast to take approximately seven weeks to complete. The well will be drilled vertically to a planned total depth of 3706m MDRT and is designed to appraise the gas potential in the southern extension of the Waitsia field.

It will target the conventional reservoirs in the Kingia and High Cliff sandstones, and the sandstone reservoirs of the Irwin River coal measures. If the results are positive, the well will be completed as a production well and a flow test may be performed.

Stage 1A of the Waitsia gas project comprised the installation of new infrastructure to connect the Waitsia-1 and Senecio-3 gas wells to the upgraded Xyris production facility (XPF). The XPF was commissioned last August and production capacity of 10 TJ/d was achieved.

Currently, gas produced from Stage 1A is being sold to local electricity supplier Alinta Energy via the Parmelia pipeline. The firm is taking up a maximum daily quantity of 9.6 TJ/d under a 2.5-year gas sales agreement.

Image: AWE onshore Perth basin / AWE

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