Esso Australia Resources Pty Ltd, a subsidiary of Exxon, in collaboration with Mitsui and Woodside Energy, has given the green light to the Kipper 1B Project, which will enhance the gas supply from the Gippsland Basin, as announced by the U.S. energy giant on Monday.
The initiative will entail the drilling of a subsea well in the Kipper field and significant enhancements to the West Tuna platform. The Kipper 1B Project is anticipated to increase the output from the Kipper field, providing essential gas supplies to the market in advance of winter 2026, according to Exxon.
“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,” stated Simon Younger, Chair of ExxonMobil Australia.
The Australian division of Exxon continues to invest in various projects to maintain gas production from the Gippsland Basin well into the 2030s, the executive noted.
The Gippsland Basin is recognized as one of Australia’s most productive hydrocarbon regions, situated approximately 200 km (125 miles) east of Melbourne.
Australia is focused on enhancing natural gas production, particularly as domestic supply often faces challenges during peak demand periods in major consumption areas.
The Australian government is committed to supporting its gas sector and will continue to promote exploration and increased natural gas production. This fuel is expected to play a significant role in the nation’s transition to a net-zero economy by 2050 and will help ensure a reliable energy source for Australia’s allies, as outlined in the Future Gas Strategy released last year.
The Strategy clearly indicates that gas will continue to be a significant energy source until 2050 and beyond, with its applications evolving as we enhance industrial energy efficiency, stabilize renewable energy sources, and lower emissions, stated Minister for Resources and Northern Australia, Madeleine King, at that time.