PETROLEUM giant Beach Energy will pour over $60m into the Limestone Coast early next year as it ramps up three major gas projects.
Projects in the pipeline include the $30m rebuild of the Katnook gas processing plant and two new conventional drilling programs, each worth about $14m.
The news comes as the company foreshadows all three projects will begin in the first quarter of 2019.
The Penola district is rapidly becoming a hotspot for new gas drilling projects amid predictions Lakes Oil NL proposed a conventional drilling project – known as Nangwarry-1 – could potentially be worth a staggering $450m.
Gas from Beach Energy’s Haselgrove-3 well is expected to start flowing through the existing gas pipeline south of Penola after the rebuild of the mothballed processing plant is completed.
The Haselgrove-3 drilling project made headlines over several weeks after it was targeted by protesters from regional environmental action group Limestone Coast Protection Alliance.
Beach Energy general manager Glenn Toogood said planning for the three major projects remained on track.
He said engineering plans were progressing for the rebuild of the Katnook processing facility.
“If everything goes to plan, construction is likely to begin in the first quarter of 2019,” Mr Toogood said.
Regarding the three projects, Mr Toogood said Beach was committed to ensuring economic spin-offs would flow to the regional economy.
He said the company wanted to see regional suppliers and contractors benefiting from the projects.
But given the specialised nature of the industry, Mr Toogood said it was not always possible to procure materials or products from the region.
Mr Toogood foreshadowed the rebuild of the Katnook gas plant could take up to 12 months.
“We will then see gas flow into the lines and back into local industry and homes,” he said.
Mr Toogood revealed the district’s gas pipeline network had not had gas flow through it since 2013.
The company’s regional executive also confirmed yesterday the energy company would open an office in the heart of Penola early next year.
He said the office would provide a regional presence for Beach Energy and be a central location for staff during the roll-out of its projects.
Beach is ramping up its drilling program in the Penola district with the Haselgrove-4 appraisal well set to begin in the first quarter of next year.
The energy giant will also undertake a fresh exploration drilling project – known as Dombey-1 – north-west of Penola.
“The office will also be a place where the community can come in and ask questions about these projects,” Mr Toogood said.
He said Beach Energy was investing in the Penola community and would have an ongoing presence in the township.
The office space will include information not only about Beach’s current program, but also outlining the history of the gas industry in the region dating back to the 1880s.
The Haselgrove-4 appraisal well – located about 7km south of Penola – will be in close proximity to the existing cluster of Haselgrove wells.
Both exploration wells – targeting potential commercial gasfields – will not use the controversial fracture stimulation technique, also known as fracking.
Beach was awarded a $6m Australian Government Gas Acceleration Program grant for the Katnook processing plant rebuild.
