Community
19 June, 2024
First gas delivered out of new well
Beach Energy Ltd has announced the successful connection of the Enterprise gas field to the Otway Gas Plant, with first sales gas delivered last Wednesday.
As announced earlier this year, Beach signed a Gas Sales Agreement (GSA) to supply Origin Energy Ltd with gas from the Enterprise field until the end of CY2026.
Beach Energy managing director and chief executive officer Brett Woods said first gas from the Enterprise field was a “significant milestone in Beach’s target of delivering a material increase in production and free cash flow over the next 12 months”.
“I thank all our staff, contractors, landholders, traditional owners and other valued stakeholders for the safe delivery of the Enterprise development,” he said.
“Enterprise is a critical new source of gas which will help support security of energy for the East Coast market for years to come.
“It reinforces the importance of ongoing exploration and development in the Otway Basin to support the rollout of renewables, household energy needs and manufacturing in Victoria.”
The Enterprise wellsite is located onshore, 3.5 kilometres from Port Campbell and eight kilometres from the Otway Gas Plant.
The well was drilled directionally to target the Enterprise gas field, located 2.5 kilometres from the shoreline with a total vertical depth of 2.5 kilometres.
Beach Energy Limited was given the green light for its plan to supply gas from an offshore field near Port Campbell on June 6.
The project was the first new gas extraction project approved since 2014 in the state.
The approval was given on the condition Beach Energy make best endeavours to sell to domestic customers first.
Minister for Energy and Resources Lily D’Ambrosio said renewable energy was the cheapest form of new built generation available right now.
“We’ve always been clear gas has a role to play in Victoria's energy transition,” she said.
“It’s critical we support Victorian homes and businesses that can electrify, to do so – helping Victorians save on their energy bills and preserving gas supply for use in businesses, manufacturing and power generation.”