In the early 1970s, the North West Shelf Project participants discovered vast quantities of natural gas and condensate beneath the seabed on Australia’s north-west continental shelf, marking the birth of Australia's largest oil and gas resource development.
Since then, the North West Shelf Project has invested more than A$27 billion in its facilities which today include offshore production platforms and subsea infrastructure, onshore processing and storage facilities at the Karratha Gas Plant, loading facilities, jetties, associated infrastructure and LNG ships.
First Phase of Development
The first phase of commercial development of the North West Shelf began in 1980 with the construction of the North West Shelf Project's onshore domestic gas plant in Karratha and a jetty for the loading of LNG and condensate.
Construction of the North Rankin A offshore production platform and the 135 km subsea pipeline to shore also formed part of the first phase of development, which followed agreement with the Western Australian government for 20-year gas supply contracts and government funding of the 1600 km Dampier to Bunbury Natural Gas Pipeline.
In 1984 the North West Shelf Project began delivering natural gas to Western Australia and today remains the State’s largest single producer of domestic gas, currently responsible for about 65 per cent of total production.
Second Phase of Development
In 1985, following the signing of sales agreements with eight major Japanese power and utility companies for long term LNG supply, work started on the second major phase of development – the construction of LNG processing and export facilities at the Karratha Gas Plant, including the first two LNG processing trains and four LNG storage tanks. After a four-year construction program, this significant undertaking was completed in 1989, enabling the Northwest Sanderling LNG carrier to deliver the first shipment of LNG to Japan in August of that year.
THIRD PHASE OF DEVELOPMENT
The third major phase of development saw the completion in 1992 of a third LNG train, followed by the commissioning in 1995 of the Goodwyn A offshore production platform, located 23km south-west of the North Rankin A platform.
In 1995, production of crude oil from the Cossack and Wanaea fields commenced from the Cossack Pioneer floating production storage and offloading (FPSO) facility, with oil from the Hermes and Lambert fields coming on line in 1997.
Also, at the end of 1995, new LPG extraction and storage facilities were commissioned and a second ship-loading jetty, adjacent to the original jetty, was built to load LPG and condensate. Debottlenecking of the onshore gas plant also lifted annual LNG production capacity to 7.5 million tonnes (2.5 million tonnes per year from each processing train).
FOURTH PHASE OF DEVELOPMENT
In 2000 the North West Shelf Project participants signed the first of a series of Letters of Intent with existing and some new Japanese customers that allowed for the fourth phase of expansion of the North West Shelf Project's LNG facilities to begin.
The fourth major phase of development began in early 2001 with the construction of a fourth LNG train with an annual capacity of 4.4 million tonnes and a second trunkline to shore. Train 4 achieved first production in 2004, increasing the North West Shelf Project's total annual LNG production capacity to 11.9 million tonnes.
In April 2003 the North West Shelf Project signed a new seven year contract with Korean utility Kogas, and in March 2004 the North West Shelf Project's ninth LNG carrier, the Northwest Swan, became part of its shipping fleet.
FIFTH PHASE OF DEVELOPMENT
The fifth major phase of development – the Phase V LNG Expansion – began in August 2005 and involved the construction of a fifth LNG train capable of processing up to 4.4 million tonnes annually, a second LNG loading berth and associated infrastructure. Following a three year construction period, Train 5 produced first LNG in August 2008, boosting the North West Shelf Project's total annual production capacity to 16.3 million tonnes.
Construction of the North West Shelf Project's third offshore production facility, the Angel platform, began in 2005 and first gas was produced for processing at the Karratha Gas Plant in October 2008.
Meanwhile, during the fifth phase of development, the North West Shelf Project made history when it delivered the first cargo of Australian LNG to China in June 2006, marking the start of a 25 year contract with Guangdong Dapeng LNG – at the time Australia’s single largest export contract. Also at that time, the China National Offshore Oil Corporation acquired an interest in the North West Shelf Project's reserves.
In 2009 the North West Shelf Project celebrated 25 years of domestic gas production in Western Australia and 20 years of LNG exports.
FUTURE GROWTH
In March 2008 the North West Shelf Project participants approved funding of the North Rankin Redevelopment Project, which involves the installation of a second offshore gas processing facility (North Rankin B) alongside the existing North Rankin A platform. The project is scheduled for start-up in 2013 and will extend field life to around 2040.
Woodside acquired Shell Development (Australia) Pty Ltd’s 16.67 per cent interest in the North West Shelf oil interests in May 2008, and in December 2008 the five Cossack Wanaea Lambert and Hermes oil venture participants (CWLH joint venture) approved funding for the replacement of the Cossack Pioneer FPSO in 2010, and the replacement of associated subsea infrastructure.
The North West Shelf Project is also considering commercialisation of the Greater Western Flank gas area, which could involve development of up to 14 fields, to maintain long term supply to the Karratha Gas Plant.