The Northern Territory Government is investing $250,000 in a feasibility study to assess the potential of developing a second liquefied natural gas (LNG) train at ConocoPhillips’ Darwin LNG facility.
The feasibility study will look at a range of LNG process technologies and production rates that support the development of another LNG train at the facility at Wickham Point.
The NT Government will provide 40 per cent of the costs for the study, with the rest provided by by ConocoPhillips and upstream resource owners in Evans Shoal, Caldita-Barossa, Poseidon, Cash Maple and Bonaparte LNG (Petrel Tern).
NT chief minister Michael Gunner said the second train would represent a new development in Australia’s off-shore industry.
“The Territory Labor Government is supporting the feasibility study because this is a significant investment towards the business case for potential expansion at Darwin LNG, potentially creating thousands of jobs during construction and operation,” he said.
Gunner added that the first train created approximately 2500 jobs during construction and more than 8500 subcontracts and purchase orders.
He also said the facility directly supports more than 250 local jobs and provides more than $100 million a year in supply and service opportunities.
ConocoPhillips Australia West vice president external affairs, Kayleen Ewin, said the feasibility study was the beginning to finding a number of methods to commercialise the offshore resources in the Australia’s north.
“With Darwin LNG, five upstream joint ventures and the Northern Territory Government involved, it is a pioneering example of all of industry and government collaborating on solutions to unlock major investments,” she said.
The feasibility is set to be completed at the end of the year.