Exxon Invests in New Natural Gas Project Offshore Australia

ExxonMobil and its partners in the Gippsland Basin offshore southeastern Australia are investing nearly $200 million in the development of a new natural gas project that would help meet Australia’s domestic demand.Exxon’s unit Esso Australia Resources Pty Ltd and its co-venturers Mitsui and Woodside Energy have approved the Kipper 1B Project to bring online much-needed additional gas supply from the Gippsland Basin, the U.S. supermajor said on Monday.The project will involve the drilling and installation of one subsea well into the Kipper field, and significant upgrades to the West Tuna platform. Kipper 1B is expected to expand capacity from the Kipper field, delivering crucial gas supplies to the market ahead of winter 2026, Exxon said.“Projects like Kipper 1B are vital to help meet the country’s energy security needs by bringing new supply online, which will be used exclusively for Australia’s domestic market,” ExxonMobil Australia Chair Simon Younger said in a statement.Exxon’s Australia unit continues to invest in multiple projects to sustain gas production from the Gippsland basin well into the 2030s, the executive added.The Gippsland Basin is one of Australia’s most prolific hydrocarbon provinces located about 200 km (125 miles) east of the city of Melbourne.Australia is betting on boosting natural gas production as domestic supply in major consuming areas is often strained at peak demand periods.Australia is backing its gas industry and it will continue to back exploration and increased production of natural gas. The fuel will play a key role in the country’s transition to a net-zero economy by 2050 and help provide a reliable source of energy to Australia’s allies, the Australian government said in its Future Gas Strategy unveiled last year.“The Strategy makes it clear that gas will remain an important source of energy through to 2050 and beyond, and its uses will change as we improve industrial energy efficiency, firm renewables, and reduce emissions,” Minister for Resources and Northern Australia Madeleine King said at the time.By Tsvetana Paraskova for Oilprice.com