WA’s minerals sector remains a significant employer in the State, with 108,930 people directly employed in mining and exploration as at 30  June in 2016–17.

Case Study – Approval of WA’s largest gas storage facility to enhance energy security

Western Australia’s largest gas storage facility is now operational following the signing of an agreement between the State Government and DDG Tubridgi Pty Ltd (DDG) in January 2017.

With an expected total construction cost of $69 million, the facility utilises the company’s depleted Tubridgi onshore gas reservoir, about 30 kilometres from Onslow in the State’s North West.

With a total storage capacity of 42 petajoules (PJ), Tubridgi is the largest underground gas storage facility in Western Australia.

The project is strategically located in close proximity to the Chevron-operated Wheatstone and BHP-operated Macedon domestic gas production facilities, and is connected to the Dampier to Bunbury Natural Gas Pipeline by existing gas transmission laterals.

The project plays an important role in enhancing energy security in WA when fully operational, as it enables banking of unused gas to cover planned production facility outages.

The agreement provides for the effective regulation of all activities in respect of safety, environment and resource management associated with injection, storage and recovery of petroleum.

CITIC Pacific, developer and operator of the Sino Iron magnetite project at Cape Preston, is the foundation customer under a 10-year gas storage agreement with DDG with options for a further five years. DDG will negotiate with other companies in the region to sign additional contracts.

Site of WA’s largest gas storage facility. Photo: DDG Tubridgi

Site of WA’s largest gas storage facility. Photo: DDG Tubridgi

Section highlights

DMP has commenced a major legislation reform initiative Petroleum 2020 to modernise and streamline the State’s petroleum and geothermal legislation to better reflect developments in the petroleum industry.