Amplitude Energy and O.G. Energy have formed a joint venture to develop an Otway Basin gas project.
Both companies have approved the East Coast Supply Project (ECSP), aimed at delivering additional gas supply to the east coast market. At a glance, the project entails a three well drilling program in the Otway Basin.
The venture is targeting supply of up to 90TJ per day through the existing Athena Gas Plant from 2028, with first gas from 2028. This is subject to regulatory approvals, final investment decisions and successful execution. The projected yield is roughly equivalent to the demand of over 600,000 Victorian homes, and will help to avoid potential gas supply shortfalls in Australia’s southern states.
The project will be conducted in two phases: Phase 1 encompasses well drilling, with well completions and subsea tree installations upon success, while Phase 2 encompasses subsea development and modifications at the Athena Gas Plant.
ECSP Phase 1 has an estimated cost of $240–270 million while Phase 2 is forecast between $140–185 million. Costs will be split on a 50/50 basis.
“In its latest Gas Statement of Opportunities released last week, AEMO highlighted the risk of peak-day gas shortfalls and seasonal supply gaps in the southern states arising from 2028, with annual supply gaps emerging from 2029,” Amplitude Energy CEO Jane Norman said.
“Our investment in the ECSP could potentially provide enough gas for over 600,000 Victorian homes for a decade from reserves and conversion of our resources. The project is structured to deliver first gas as early as possible, minimise exploration risks and maximise the use of existing gas infrastructure.
“We look forward to working with O.G. Energy to bring additional and much-needed gas supply to Australia’s southeastern domestic market.”
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