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BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry
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Woodside pushes on with plan to develop LNG bunkering in Western Australia

Plans to build LNG distribution facilities and increase Pluto LNG production move forward.

Updated on 18 Aug 2017 13:29 GMT

Woodside Energy says it is continuing with its efforts to promote the use of LNG as a transport fuel, with a particular focus on developing a market in the Pilbara region of Western Australia.

At the company's Pluto LNG onshore production plant, the oil and gas firm notes that it is progressing with the development of facilities to distribute LNG fuels in Pilbara, including for use in refuelling Woodside's own marine support fleet.

The company says it is continuing to develop proposals to construct a truck-loading facility at Pluto to support the distribution of LNG as a transport fuel and for remote power generation.

Pluto LNG expansion studies have also commenced, and contractors have been engaged to develop concept options. The project could add 1-1.5 million tonnes per year of LNG to Pluto's production.

The company previously announced in February that it was looking to raise production at its Pluto LNG facility in a move that would also enable the firm to supply to the marine and mining sectors.

In H1, Pluto LNG achieved record daily and weekly production rates - 3 percent higher than the previous record (Q3 2016), after completing high-rate trials. The trials are said to have demonstrated additional capacity in the LNG train and the results are to be used to inform decision making on Pluto expansion options.

Woodside outlined the creation of a Burrup Peninsula 'hub' in the Pilbara region of Western Australia as a key priority for 2017. The area includes the port of Dampier, which witnessed the country's first LNG bunker delivery to the Woodside-chartered Siem Thiima on January 23.

The plan includes the development of facilities that would enable the distribution of LNG in the Pilbara region for use as a marine fuel.

The Pluto LNG project is located around 190 kilometres north-west of Karratha, Western Australia, in the Northern Carnarvon Basin.

The total area of the Pluto onshore facility is approximately 200 hectares, of which the plant and associated infrastructure cover about 80 hectares. The infrastructure comprises a single LNG processing train with an annual loaded LNG production rate equivalent to 4.9 million tonnes per annum.

Last month, Woodside chief operations officer, Michael Utsler, said the company aims to convert all of its offshore support vessels (OSVs), "where practical", to LNG dual fuel by 2022. He explained that with the OSV Siem Thiima "we wanted to demonstrate that LNG as a marine fuel was both viable and competitive to the conventional marine fuels in operation in coastal and international waters".

Woodside also forms part of the 'Green Corridor' joint industry project to use LNG-fuelled bulkers to transport iron ore and coal along a route between Australia and China.

On Wednesday, Woodside posted a H1 net profit after tax of $507 million - a year-on-year increase of 49 percent.

Related Links:

Woodside aims to convert all OSVs to LNG by 2022
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