ExxonMobil and its partners are investing nearly $200 million to develop a new natural gas project in the Gippsland Basin, off southeastern Australia, aimed at strengthening the country’s domestic energy supply.
Esso Australia Resources Pty Ltd, ExxonMobil’s local subsidiary, along with co-venturers Mitsui and Woodside Energy, has greenlit the Kipper 1B Project. This initiative will unlock additional gas resources from the Gippsland Basin, ensuring much-needed supply for the Australian market, the company announced on Monday.
The project involves drilling a new subsea well in the Kipper field and upgrading the West Tuna platform. Once operational, Kipper 1B is expected to increase gas production capacity, with supply reaching the market ahead of winter 2026.
“Projects like Kipper 1B are essential for maintaining energy security by delivering new domestic supply,” said Simon Younger, ExxonMobil Australia Chair. He also emphasized the company’s ongoing commitment to sustaining Gippsland Basin gas production well into the 2030s.
Located approximately 200 kilometers (125 miles) east of Melbourne, the Gippsland Basin is one of Australia’s most productive hydrocarbon regions. As peak demand continues to strain domestic supply, Australia is doubling down on natural gas production to bridge the gap.
The Australian government reaffirmed its support for the gas sector in its Future Gas Strategy, released last year. The plan highlights natural gas as a cornerstone of the nation’s transition to a net-zero economy by 2050, while ensuring reliable energy for both domestic use and international allies.
“Gas will remain a critical energy source through 2050 and beyond,” said Minister for Resources and Northern Australia Madeleine King. “Its role will evolve as we improve industrial energy efficiency, support renewable integration, and reduce emissions.”