ExxonMobil’s Australian unit announced on Monday that its Gippsland Basin joint venture with Woodside Energy has approved the final investment decision for the Turrum Phase 3 project, aimed at developing underutilized gas resources.
The A$350 million ($221.31 million) project will involve drilling five new wells in the Turrum and North Turrum gas fields to extend the supply of domestic gas.
Earlier this year, Australia’s competition regulator warned that the east coast could face a gas supply shortage by 2027, potentially leading to reliance on gas imports. The expected shortfall stems from structural decline and uncertainty surrounding future investments.
“While depletion of the Gippsland Basin is inevitable, projects such as Turrum will ensure Bass Strait continues to produce gas for the domestic market past 2030,” said Simon Younger, Chair of ExxonMobil Australia, in a statement to Reuters.
The Gippsland Basin joint venture is a 50-50 partnership between Esso Australia Resources and Woodside Energy (Bass Strait), operated by Esso Australia.
Liz Westcott, Woodside’s Executive Vice President and Chief Operating Officer for Australian operations, emphasized the significance of the project, stating, “The Turrum Phase 3 project, along with the recently approved Kipper 1B project, will unlock additional gas needed to prevent future shortfalls.”
“Every molecule of gas Woodside supplies from the Bass Strait fields is sold into the Australian domestic market, supporting local manufacturers, power generators, and households,” Westcott added.