Esso Australia delivers crucial project for Australian natural gas supplies

Esso Australia Pty Ltd, a subsidiary of ExxonMobil Australia Pty Ltd and operator of the Gippsland Basin Joint Venture (a 50-50 partnership between Esso Australia Resources Pty Ltd [Esso] and Woodside Energy Pty Ltd.), announced today the successful completion of the Kipper Compression Project. This initiative, essential for sustaining domestic natural gas supply, involved installing compression facilities on the West Tuna platform to support production from the Kipper field, which faces declining reservoir pressure as it is gradually depleted.

“The successful completion of the Kipper Compression Project enables the Gippsland Basin Joint Venture to maintain production of critical natural gas supplies from the Kipper field, an integral part of our production system,” said ExxonMobil Australia Chair, Simon Younger.

“Accessing new gas supplies or maintaining gas production is not simply a matter of flicking a switch; our project and operations teams put in more than one million hours to ensure its safe completion and on schedule.”

Younger added that, as noted by the Federal Government, natural gas remains an essential component of the energy grid, providing critical backup for renewable sources. It will also play a key role for industries like glass, bricks, steel, fertilizer, recycling, and critical minerals, which currently lack alternative energy or feedstock options.

“Over the past six decades, Esso and its joint venture partners have made significant investments in Bass Strait to help meet Australia’s energy security and this project is another prime example of Esso’s efforts to power Australian homes and businesses,” said Younger.

“We have invested hundreds of millions of dollars into the Gippsland Basin, including in projects such as the Kipper Compression Project which will help supply as much gas alone as is consumed in all of Victoria in a year.

“These assets have generated significant economic benefits, for the nation, the state, but importantly also for the local communities where we live and work.”