From Australia (RW): ExxonMobil/BHP Billiton’s proposed Scarborough gas development on the Exmouth Plateau, offshore Western Australia has, received conditional approval from Australian Environment Minister Greg Hunt.

Initial plans are for a floating LNG development, but there is no guarantee as yet that this will be the final design. It would be larger than the FLNG facilities being built for Shell’s Prelude field in the Browse Basin further north.

The FLNG vessel would be 495m long and 75m wide. The Prelude unit is 488m by 74m. The Scarborough production unit would be capable of processing 6-7mt/a of LNG compared to Prelude’s 3.6mt/a.

Start FEED-ing
FEED for the Scarborough FLNG vessel is scheduled to begin in 2014 with a final investment decision not due until the 2015 financial year.

The Scarborough licence group’s environmental application described the project as processing gas from 12 wells to be drilled during two phases from 2018.

The Minister’s conditions of approval relate to precautions to protect humpback and other whales that migrate through the region. The approval also stipulates corridors for any telecommunications cables to be used for communication with the FLNG vessel.

Scarborough field, discovered in 1979, contains up to 28bcm of dry gas. Depending on the project being declared viable, FLNG would begin production in 2021.

Meanwhile, the WA government has finalised acquisition of a 3,414ha site near James Price Point in the Kimberley region in the state’s northwest to serve as a potential supply base for offshore projects.

The move comes despite the Woodside joint venture planning the Browse LNG development abandoning the location as a site for an LNG facility in favour of floating LNG facilities.

The state government of Western Australia, led by Premier Colin Barnett, has paid A$10mn for an economic development fund and A $20mn for indigenous housing in accordance with native title agreements signed in 2011.

The government says the land could be used for a supply base to service future projects in the Browse Basin and perhaps the offshore Canning Basin. The site was initially selected by the WA government in 2009 from more than 40 other locations. Nearby deepwater access was a key consideration.

Traditional owners will have an ongoing role in managing environmental, social and heritage outcomes.

The state-owned Landcorp will manage the land, while the Broome Port Authority will be responsible for the earmarked port area at the designated site which lies 60km north of Broome township.

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