DBP Development Group (DDG), 100% owned by DUET Group (DUET), is pleased to announce that it will build the largest gas storage facility in Western Australia.

 

Location

duet-13-dec-201675

  • Utilises DDG’s depleted Tubridgi onshore gas reservoir, located approximately 30km from Onslow in the north west of WA
  • Strategically located in close proximity to the Chevron-operated Wheatstone and BHP-operated Macedon domestic gas production facilities
  • Connected to Compressor Station 2 (CS2) on the Dampier to Bunbury Natural Gas Pipeline via existing gas transmission laterals

Operating Features

  • Storage capacity of around 42PJ
  • Daily injection and withdrawal rates of around 50TJ/day

Customers

  • CITIC Pacific Mining Management Limited (CPM), a CITIC Limited subsidiary, developer and operator of the Sino Iron magnetite project at Cape Preston will be the foundation customer, under a 10-year gas storage agreement with options for a further 5 years
  • Additional contracts with other customers are being negotiated by DDG

Construction and Funding

  • Expected to be operational by June 2017
  • Estimated total construction cost of $69 million, to be funded by $38 million of DUET’s corporate working capital and the balance from DDG’s bank debt facility

DDG Chief Executive Officer Stuart Johnston said “The Tubridgi gas storage facility will benefit producers and customers alike who may require storage capacity to bank unused gas, smooth production profiles or to store gas to cover planned production outages. DDG has an outstanding reputation as a safe and reliable developer, owner and operator of critical gas infrastructure, and we look forward to ensuring these standards are continued on this project.”

 

Mr. Johnston went on to say “In developing the project to this stage we are very pleased with the support we received from the traditional owners, the Thalanyji people and local landowners. Support from Government agencies, particularly DMP, has also enabled DDG to quickly progress to a final investment decision.”

 

CPM Chief Executive Officer Chen Zeng said “This decision shows how our investment in Sino Iron continues to underpin the development of critical infrastructure for Western Australia. This is a win-win result. A reliable, cost-effective energy supply is very important for our project. The Tubridgi storage facility will greatly assist us in managing our operational requirements for energy over the long term. We’re looking forward to working closely with DDG for many years to come.”

 

  •  
  • ENDS

 

  • DDG’s Media contact
  • Gemma Tognini
  • +61 08 9227‐8195 | +614 00 006 376
  • gtmedia strategic communication
  •  
  • gemma@gtmedia.com.au
  • About DBP Development GroupAbout the Sino Iron project Tubridgi is a depleted gas field located onshore in WA within close proximity to Onslow. The field produced 69PJ of dry gas between 1991 and 2004 from a total of 21 wells drilled into the Tubridgi field over its life. The Tubridgi gas field has several advantages to allow gas storage that other storage fields may not possess. The reservoir is quite shallow at approximately 550m, meaning that the required injection pressures are low. It has excellent permeability and pressure support through an active aquifer that ensures almost constant rates of deliverability when the field moves to production.
  • About Tubridgi
  • Sino Iron is located at Cape Preston, 100km south west of Karratha in Western Australia’s Pilbara region. It is the largest magnetite mining and processing operation in Australia, focused on delivering a world class magnetite iron ore which will add value to the Western Australian economy through significant downstream processing, employment, community benefits and international technology transfer while balancing social and environmental consideration. CITIC Pacific Mining Management is the developer and operator of Sino Iron.
  • DDG is the owner and operator of the 110km Wheatstone Ashburton West Pipeline and the 270km Fortescue River Gas Pipeline (in joint venture with TransAlta).

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