BHP’s $1.5 billion WA natural gas plant is open for business

With a production capacity of 200 terrajoules per day, the plant will be busy pulling gas from four offshore wells.

BHP Billiton‘s (ASX: BHP) domestic gas project is ready to pay off. The company announced today that its Onslow, WA Macedon domestic project is officially online, compliments of WA Premier Colin Barnett.

The $1.5 billion facility has unofficially been producing since August, when the first offshore gas from the Exmouth Sub-Basin was commercialized for domestic consumption. “BHP Billiton is playing an important role in securing a diverse and reliable energy supply for Western Australia,” said Asset President Conventional Steve Pastor in a statement today. “Macedon is BHP Billiton’s largest operated Australian domestic gas project and is expected to supply domestic gas for the wholesale market in Western Australia until at least 2033. The operation will supply 20 per cent of the State’s daily domestic gas supply for consumers and industry.”

With a production capacity of 200 terrajoules per day, the plant will be busy pulling gas from four offshore wells to ship off to WA consumers via the Bunbury Natural Gas Pipeline (jointly owned by DUET Group (ASX: DUE) and Alcoa (ASX: AAI), the longest line in Australia.

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Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter @TMFJLo.

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