The state-owned utility needs to replace the generation capacity it will lose by closing down all its coal-fired power stations over the next four years.
Most gas in Western Australia is produced offshore and exported as LNG, with some reserved for domestic use. Production from the onshore Perth Basin is increasing. WA is the most gas-dependent state in Australia.
A rig has arrived off the North West to drill the first of two wells for Quadrant Energy which potential investors will monitor closely in coming months.
It has been a long, convoluted journey for Canadian company ATCO to own Perth’s gas distribution network, build dongas in Kwinana and research solar-generated hydrogen.
Buck-passing between oil giants over who pays for the upkeep of the ageing North West Shelf LNG plant has emerged as the biggest hurdle to Woodside sending its Browse gas to the facility.
From the outset, Norway planned to maximise the long term benefit it gained from its oil and gas, unlike Australian politicians who are content with crumbs from the table.
Woodside is confident it will not have to pipe gas to WA from its giant Pluto project despite the company’s five-year reprieve from the State’s domestic gas policy ending in May 2017.
