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Second LNG train at Darwin gets funding

Five upstream JVs and Northern Territory government fund new feasibility study 

The owners of five large undeveloped gas discoveries off northern Australia have come together to fund a feasibility study into a second LNG train at the Darwin LNG plant.

The study, which will be performed by KBR, is part funded by the Northern Territory government.

The territory's Chief Minister Michael Gunner said a second train for the Darwin LNG facility would involve a multi-billion dollar investment and represent a new development in Australia’s offshore gas industry.

The territory will fund around 40%, or A$250,000, of the feasibility study costs with the remainder funded by ConocoPhillips and the upstream resource owners of the Evans Shoal, Caldita-Barossa, Poseidon, Cash Maple and Bonaparte LNG (Petrel Tern) discoveries.

That means major companies such as ConocoPhillips, Shell, Eni, Petronas, Engie and PTT Exploration & Production are involved.

Gunner said the study will explore different LNG process technologies and production rates to support a low-cost development for a second LNG train.

ConocoPhillips Australia West vice president of external affairs, Kayleen Ewin, said the feasibility study is the first step in finding new ways to commercialise the substantial offshore resources in Northern Australia.

“With Darwin LNG, five upstream joint ventures and the Northern Territory government involved, it is a pioneering example of all of industry and government collaborating on solutions to unlock major investments,” Ewin said.

The study is scheduled to be complete by the end of this year.