Exploration & Production

WA investment rises in response to forecast gas shortages

A projected shortfall in gas for the domestic market is prompting greater upstream activity in Western Australia A projected shortfall in gas for the domestic market is prompting greater upstream activity in Western Australia.
By Sally Bogle 23 November 2017 0 28517
The Jack Bates drilling rig on the North West Shelf. (Hess)

A forecast shortfall of gas in Western Australia (WA) from early next decade appears to be galvanising activity in upstream projects focused on the state’s domestic market. The acquisition of Hess’s Equus project offshore WA by local company Western Gas earlier this month may be followed by similar deals as attention shifts from LNG exports to meeting post-2020 gas demand. 

Hess originally intended Equus to be an LNG project but has been divesting assets internationally to focus on core operations. Equus’s new owner wants to supply...