News 31 Mar 2021

Pipeline of opportunity

Construction has started on the Pluto-KGP Interconnector – the first step in realising Woodside’s vision for a regional LNG hub on Western Australia’s Burrup Peninsula.

The interconnector will link Pluto LNG and Karratha Gas Plant (KGP) and increase flexibility for processing gas from various fields and third-party resource owners.

Project Manager Michael Gibson explains: “The interconnector will link Pluto LNG and the Karratha Gas Plant (KGP) with the construction of a 3.2 km-long 30-inch pipeline.

“The scope also includes new gas conditioning facilities at Pluto LNG, and common piping infrastructure at KGP that will allow gas to be received from both the new Interconnector Pipeline and existing Burrup Extension Pipeline.”

Transporting gas through the Pluto-KGP Interconnector provides opportunities to utilise future excess capacity at KGP.

It also provides potential to accelerate future developments of other offshore Pluto gas reserves and the gas of other resource owners (ORO).

Senior Corporate Affairs Adviser Heritage Daniel Thomas says: “The chosen design and route positions the Pluto-KGP Interconnector so it will avoid disturbance of protected heritage sites and environmental values.”

Some gas will be accelerated from the offshore Pluto fields through the Pluto-KGP Interconnector for processing at the North West Shelf (NWS) Project’s KGP.

Woodside announced a final investment decision on the pipeline component of the Pluto-KGP Interconnector in November 2019.

The NWS Project participants made a final investment decision in December 2020 for the additional required infrastructure to receive third-party gas at KGP.

“The Pluto-KGP Interconnector will optimise production across both facilities, underpin sustainable and long-term operation at both plants while supporting community development activities in the Pilbara,” says Michael.

“While many projects were slowing down in 2020, I’m proud of the determination and perseverance shown by the extended team to progress the project as the first step in realising Woodside’s vision for a regional LNG hub on the Burrup Peninsula.”

Michael adds: “It’s also rewarding to see the number of WA-based jobs and contracts the opportunity supported in 2020 and will support going forward.”

Many key contracts have already been awarded and WA-based companies which won contracts include NEMMs JV for the civil works and Civmec for the fabrication of structural steel, piping, modules and skids.

At its peak, the construction and operation of the Pluto-KGP Interconnector will employ a workforce of about 370.

Start-up of the Pluto-KGP Interconnector is targeted in 2022.

The goal is to leverage existing infrastructure to unlock value by providing a long-term solution for processing gas resources for both the domestic and export markets.

The Interconnector is only one of a number of projects, such as Pluto Train 2, Scarborough Project and the NWS Project Extension, which are proposed to realise this vision.

Niall Myles, Senior Vice President Agility and previously SVP Power, New Energy and Burrup Hub, says: “The Interconnector has many strategic value elements.

“These include near-term revenue creation, providing the driver for NWS Project participants to complete the suite of agreements and infrastructure to process third party gas and keep KGP full.”

Niall adds: “It also creates options for future development opportunities.”


Read the Q1 2021 edition of Trunkline here.