North West Shelf project approved

Participants in the North West Shelf Venture approved on March 31 a US$4.6 billion project to recover low-pressure gas from fields off Australia’s northwest coast.

Woodside Petroleum Ltd. — a venture member with BHP Billiton and four other companies — said the North Rankin 2 project would start in 2013. It is an extension of an ongoing project to capture remaining gas from the North Rankin and Perseus gas fields, said a statement from Woodside, the operator of the North West Shelf liquefied natural gas venture.

The project will include a second platform, North Rankin B, which will stand in about 410 feet of water and be connected by a 100-yard bridge to the existing North Rankin A platform.

In a separate statement, BHP said its share of the North Rankin 2 development costs would be US$850 million.

BHP Billiton Petroleum Chief Executive J. Michael Yeager said the North Rankin project will deliver high-value gas supply from the North West Shelf for another 25 years. The Venture accounts for more than 40 percent of Australia’s oil and gas production and is a major producer of liquefied natural gas, natural gas, liquid petroleum gas and crude oil.

The six equal participants in the North West Shelf Venture are Woodside, BHP Billiton, BP PLC, Chevron Corp., Royal Dutch Shell and Japan Australia LNG.

—The Associated Press