Origin Energy Ltd., Sydney, has signed an agreement with private Australian developer/producer GB Energy to purchase all the natural gas to be produced from GB Energy’s Golden Beach gas field about 3 km off the Gippsland coast of eastern Victoria.
GB Energy estimates the field, in retention permit Vic/RL1 (V) in Victorian state waters, will produce 50 petajoules of gas over a 3-year period. The gas will be sold to Origin at an undisclosed fixed price.
GB Energy plans to develop the field via a pipeline coming ashore near the township of Golden Beach and transporting the gas to a new processing plant near the ExxonMobil/BHP facilities at Longford.
Pipeline construction is expected to begin late this year or early in 2020 and first gas is scheduled to come ashore in 2022. The Origin deal will underpin the field development and the gas will be sold into the domestic market.
Origin has also entered into a foundation storage contract with GB Energy when the company transitions the field reservoir into an underground storage facility at the end of the field’s natural productive life.
Golden Beach field was discovered in 1967 byp the Burmah Oil Company, but was considered marginal, particularly as the gas has only minor liquid content. Ownership has passed through a number of hands since then, including Woodside, OMV Australia and Santos. GB Energy is the current owner with 100% interest.
