Australian LNG operator Woodside has taken a final investment decision on the pipeline component of the Pluto-North West Shelf (NWS) Interconnector.
Woodside said that it also entered into contractual arrangements with DDG Operations for the construction of the pipeline and its ongoing operation and maintenance.
The Pluto-NWS Interconnector will connect Pluto LNG and the NWS Project’s Karratha Gas Plant and is the first component of the infrastructure needed to transport gas between the two facilities.
Construction and operation of the pipeline is subject to regulatory approvals by the State of Western Australia and finalization of commercial arrangements with the Pluto and NWS joint venture participants.
Woodside CEO Peter Coleman said: “Our vision for the Burrup Hub will unlock the future value of infrastructure which has been supplying gas to Western Australia and the world safely and reliably for more than 30 years. The Interconnector between the Pluto LNG and NWS facilities will enable us to optimize the processing of gas from our offshore fields.
“Delivering the proposed Burrup Hub will help underpin Western Australia’s economic strength for decades into the future. It will provide thousands of jobs, opportunities for local suppliers, and tax and royalty revenues to Western Australia.”
According to consultants ACIL Allen, Burrup Hub will generate an average of more than 4,000 jobs per annum in Australia over the coming decades, with more than 1,900 of those located in Karratha and Broome.
It will boost Australia’s estimated gross domestic product by $414 billion between now and 2063, of which 99 percent would be in Western Australia.
It is worth noting that Woodside is targeting start-up of the Pluto-NWS Interconnector in the first half of 2022.