Exxon Boosts Australian Gas
- In a move to enhance Australia's domestic gas supply, ExxonMobil and Woodside Energy are advancing meaningful projects in the Gippsland Basin.
- On March 17, 2025, ExxonMobil's Australian unit announced that its joint venture with Woodside Energy has approved the final investment decision for the Turrum Phase 3 project.
- The Turrum Phase 3 project will focus on drilling five new wells in the Turrum and Turrum North gas fields.
ExxonMobil and Woodside Greenlight Gas Projects to Bolster Australian Supply
Table of Contents
- ExxonMobil and Woodside Greenlight Gas Projects to Bolster Australian Supply
- ExxonMobil & Woodside’s Australian Gas Projects: Your Questions Answered
- Key Project Details
- Why are ExxonMobil and woodside investing in gas projects in Australia?
- What is the turrum Phase 3 project?
- What is the Kipper Compression project?
- What is the Kipper 1B project and when will it deliver gas?
- Where is the Gippsland Basin located and why is it critically important?
- What is Australia’s concern regarding energy security?
- What will be the long-term impact of these Gippsland Basin projects?
In a move to enhance Australia’s domestic gas supply, ExxonMobil and Woodside Energy are advancing meaningful projects in the Gippsland Basin. These investments aim to tap into underdeveloped reserves and ensure a stable energy source for the country.
Turrum Phase 3 Project Approved
On March 17, 2025, ExxonMobil’s Australian unit announced that its joint venture with Woodside Energy has approved the final investment decision for the Turrum Phase 3 project. This initiative involves a substantial investment of US$222 million (AUS$350 million) to further develop the Turrum gas field.
The Turrum Phase 3 project will focus on drilling five new wells in the Turrum and Turrum North gas fields. This expansion is strategically designed to tap into previously underdeveloped reserves, thereby increasing the overall gas supply to Australia’s east coast.
Kipper Compression Project Completed
Adding to these efforts, ExxonMobil and Woodside have also completed the Kipper Compression project in victoria. this project underscores their commitment to maintaining a robust gas supply for the Australian domestic market.
Statements on Gippsland Basin’s Future
Simon younger, Chair of ExxonMobil Australia, commented on the long-term prospects of the Gippsland Basin:
While depletion of the Gippsland Basin is inevitable, projects such as Turrum will ensure Bass Strait continues to produce gas for the domestic market past 2030.
Kipper 1B Project Aims for Winter 2026 Delivery
Last month, Esso Australia Resources Pty Ltd, along with co-venturers Mitsui and Woodside Energy, approved the kipper 1B Project. This project is geared towards bringing additional gas supply from the Gippsland Basin online.
the Kipper 1B Project includes the drilling and installation of a subsea well into the Kipper field, along with significant upgrades to the West tuna platform. The expected outcome is an expanded capacity from the Kipper field, delivering crucial gas supplies to the market ahead of winter 2026.
Younger emphasized the importance of such projects:
Projects like Kipper 1B are vital to help meet the country’s energy security needs by bringing new supply online, which will be used exclusively for Australia’s domestic market.
Background on the Gippsland Basin
The Gippsland Basin,located approximately 200 km (125 miles) east of Melbourne,is recognized as one of Australia’s most productive hydrocarbon provinces. Its strategic importance is growing as Australia seeks to boost its natural gas production to meet domestic demand.
Australia’s Energy Security Concerns
Australia is actively working to increase its natural gas production, notably as domestic supply in major consuming areas faces strain during peak demand. Concerns have been raised about potential natural gas shortages on Australia’s east coast as early as 2027, according to a report by the Australian Competition and Consumer commission (ACCC).
These gas expansion projects by ExxonMobil and Woodside are critical steps toward ensuring Australia’s energy security and meeting the growing demand for natural gas.
ExxonMobil & Woodside’s Australian Gas Projects: Your Questions Answered
ExxonMobil and Woodside Energy are investing heavily in new gas projects in the Gippsland Basin, Australia. What’s driving these investments, and what impact will they have on Australia’s energy future? This Q&A explores the key aspects of these projects and their importance.
Key Project Details
| Project | Description | Expected Impact | Partners | Target Delivery |
| ——————— | ———————————————————————– | ——————————————————- | —————————– | —————————————————— |
| Turrum Phase 3 | Drilling five new wells in Turrum and Turrum North gas fields | Increase gas supply to Australia’s east coast | ExxonMobil, Woodside Energy | Ongoing (Approved March 17, 2025) |
| Kipper Compression | Completed compression project | Maintain robust gas supply for the Australian domestic market | ExxonMobil, Woodside Energy | Completed |
| Kipper 1B | Drilling and installation of a subsea well, upgrades to West Tuna platform | Expanded capacity from Kipper field | Esso, Mitsui, Woodside Energy | Ahead of Winter 2026 |
Why are ExxonMobil and woodside investing in gas projects in Australia?
ExxonMobil and Woodside are investing in the Gippsland Basin gas projects to bolster Australia’s domestic gas supply and support the nation’s energy security.These projects aim to tap into underdeveloped gas reserves and ensure a stable energy source, addressing concerns about potential natural gas shortages.
What is the turrum Phase 3 project?
Investment: US$222 million (AUS$350 million).
Focus: Drilling five new wells in the Turrum and Turrum North gas fields.
* Objective: Increase overall gas supply to Australia’s east coast by accessing previously underdeveloped reserves.
What is the Kipper Compression project?
The Kipper Compression project has been completed in victoria.This project underscores ExxonMobil and Woodside’s commitment to maintaining a robust gas supply for the Australian domestic market.
What is the Kipper 1B project and when will it deliver gas?
The Kipper 1B project involves the drilling and installation of a subsea well into the kipper field,along with upgrades to the West Tuna platform. The expected outcome is an expanded capacity from the Kipper field, delivering crucial gas supplies to the market ahead of winter 2026.
Where is the Gippsland Basin located and why is it critically important?
The Gippsland Basin is located approximately 200 km (125 miles) east of Melbourne.It is recognized as one of Australia’s moast productive hydrocarbon provinces. Its strategic importance is growing as Australia seeks to boost its natural gas production to meet domestic demand.
What is Australia’s concern regarding energy security?
australia is actively working to increase its natural gas production, notably as domestic supply in major consuming areas faces strain during peak demand. Concerns have been raised about potential natural gas shortages on Australia’s east coast as early as 2027, according to a report by the Australian Competition and Consumer Commission (ACCC).
What will be the long-term impact of these Gippsland Basin projects?
While depletion of the Gippsland Basin is inevitable, projects such as Turrum phase 3 and Kipper 1B will ensure Bass Strait continues to produce gas for the domestic market past 2030. These projects are vital to help meet the country’s energy security needs by bringing new supply online, which will be used exclusively for Australia’s domestic market.