ExxonMobil's Esso Australia Finishes Kipper Compression Project to Enhance Natural Gas Supplies

Esso Australia Pty Ltd, a subsidiary of ExxonMobil Australia Pty Ltd and operator of the Gippsland Basin Joint Venture, a 50-50 partnership with Woodside Energy Pty Ltd, has successfully completed the Kipper Compression Project. This achievement is essential for maintaining critical natural gas supplies for the domestic market. The project involved the installation of compression facilities on the West Tuna platform to sustain production from the Kipper field, which faces declining reservoir pressure as it depletes.

Simon Younger, Chair of ExxonMobil Australia, emphasized the significance of the project, stating, “The successful completion of the Kipper Compression Project enables the Gippsland Basin Joint Venture to maintain production of critical natural gas supplies from the Kipper field, an integral part of our production system.” He highlighted that accessing new gas supplies or sustaining production is a complex process, requiring substantial effort from project and operations teams. In fact, over one million hours of work were dedicated to ensuring the project’s safe and timely completion.

The Federal Government recognizes that natural gas plays a vital role in the energy grid, serving as an essential backup to renewable sources. Younger pointed out that gas will be crucial for various industries, including glass, bricks, steel, fertilizers, recycling, and critical minerals, which do not have alternative energy or feedstock options.

Over the past sixty years, Esso and its joint venture (JV) partners have made significant investments in Bass Strait to enhance Australia’s energy security, and the Kipper Compression Project exemplifies these efforts. Younger stated, “We have invested hundreds of millions of dollars into the Gippsland Basin, including projects like the Kipper Compression Project, which has the potential to supply as much gas in a year as is consumed across all of Victoria.”

These investments have not only bolstered energy security but have also generated substantial economic benefits for the nation and the state, while importantly contributing to the local communities where Esso operates. The completion of the Kipper Compression Project marks a critical milestone for Esso Australia and its partners, reinforcing their commitment to providing reliable natural gas supplies and supporting Australia’s energy needs.

Overall, the successful execution of this project underlines the importance of sustained investment in energy infrastructure to ensure that essential resources remain accessible to Australian homes and businesses. With continued focus on maintaining and enhancing natural gas production, Esso Australia aims to play a pivotal role in the country’s energy landscape.