Federal Member for Gippsland Darren Chester has welcomed Cooper Energy Limited’s declaration of a final investment decision (FID) for the Sole gas project, which will see a $250 million upgrade to the Orbost gas plant.
The total project is valued at $600 million including a $250 million plant upgrade being undertaken by APA at Orbost.
Mr Chester said it would deliver more domestic gas from March 2019, which should reduce pressure on energy prices.
“As part of this project, the Sole gas field will deliver gas sales of 24 PJ per year, which is around four times the company’s current production,” Mr Chester said.
“Importantly for the local community there will be new jobs created in and around Orbost.
“Significant benefits are expected to flow to local suppliers, along with around 150 jobs during the construction phase and 20 jobs during ongoing operations, most of which will be at the Orbost gas plant once the upgrade is complete.”
Cooper Energy Managing Director David Maxwell said the announcement was a milestone for the company.
“The FID declaration is the culmination of five years’ efforts under our gas strategy to identify, secure and develop gas resources best placed to supply south-east Australia with a new source of gas supply,” Mr Maxwell said.
“We now have a fully funded gas project that is proceeding on schedule to deliver a new gas supply to south-east Australia in 2019.”