Australian oil giant BHP Billiton has started its $1.5billion Macedon gas project as it looks to supply a fifth of Western Australia’s gas for the next 20 years.
The plant, around 100km off the Australian coast, will produce up to 200terrajoules of gas per day.
The development, Western Australia’s fourth domestic gas hub, began operating last month, according to project partner Apache.
The Macedon field, which sits close to a nominated World Heritage Site, looks set to supply 20% of the state’s daily domestic gas requirements until at least 2033.
The region faces a gas shortage, with prices tripling since 2005, according to the state’s DomGas Alliance.
Apache plans to invest about $1.9 billion in Australia this year, including the Coniston and Balnaves oil projects and the Julimar development, the company said.