Cooper Energy extends transition agreement for Orbost gas plant
Cooper Energy Ltd., Adelaide, has extended its transition agreement with APA Group in relation to the Orbost gas plant in Victoria by 12 months.
The companies entered into the agreement in August 2020 with the aim of providing the framework for commencing gas sales agreements for Sole field in eastern Bass Strait and commissioning the Orbost processing plant as soon as possible.
The agreement includes revenue and cost-sharing mechanisms during the plant commissioning phase along with payments to Cooper Energy for the cost of sourcing back-up gas supply if needed.
That agreement is due to expire May 1, but Cooper has exercised an option to extend the agreement for another year.
The companies are working to improve output of the Orbost plant, which has underperformed since coming on stream in 2020.
The plant’s two sulphur absorbers were reconfigured during the December quarter last year, resulting in improved production rates. Average production in March was 42 terajoules/day of gas compared with 39 terajoules/day in February.
Periodic cleaning of the absorbers is still required every 6 weeks to reach 45 terajoules/day.
Cooper and APA are discussing further capital works to be undertaken this year. The goal is to reach a nameplate capacity of 68 terajoules/day.
Under consideration are installation of solids removal equipment to reduce fouling from solids deposition within the absorbers, changing the liquid distributors within the absorbers, and installation of a polishing unit to reduce the impact of hydrogen sulphide breakthrough during foaming events in the sulphur recovery unit.
Sole field, in 124 m of water about 65 km offshore Australia, came on stream in March 2020. The original plan was for field production of 24 petajoules/year.
The field was originally discovered by Shell Australia in 1973 but deemed sub-commercial. The field changed hands numerous times until Cooper Energy became 100% owner upon purchase of Santos’ 50% share in October 2016.
