Rick Wilkinson
OGJ Correspondent
MELBOURNE, May 21 -- Woodside Petroleum's proposed second LNG train for the Pluto LNG Project on the Burrup Peninsula of Western Australia could be lining up a deal to source gas feedstock from the Apache Energy group's offshore Julimar field.
Woodside said it had signed a nonbinding letter with Apache and its partner Kufpec which sets out the terms for negotiations on a non-exclusive sale of gas from Julimar and nearby Brunello discoveries to the Pluto plant.
Woodside added that gas options for Train 2 were being canvassed with a number of parties in the offshore Carnarvon Basin region, but this was the first to put pen to paper, albeit tentatively.
The news is interesting in that Apache had originally earmarked Julimar and Brunello to supply Stage 2 of its Devils Creek domestic gas plant near Onslow. There may be sufficient gas to feed both projects.
Woodside's own Pluto and nearby Xena fields have only sufficient gas for Pluto Train 1 and the company has been saying for some time it would need to make more discoveries or source third party gas for the Train 2 proposal.
Julimar was found in April 2007 and Brunello in September 2007. Both are in permit WA-356-P.