BHP Billiton Ltd. (BHP), Australia’s largest oil producer, started its $1.5 billion Macedon natural gas project, according to partner Apache Corp. (APA:US)
The development, Western Australia’s fourth domestic gas hub, began operating last month and has production capacity of 200 terajoules a day, Houston-based Apache said in an e-mailed statement. Melbourne-based BHP owns 71.4 percent of Macedon, while Apache owns the rest.
Western Australia faces a gas shortage, with prices tripling since 2005, according to the state’s DomGas Alliance, which represents state users such as Newmont Mining Corp. (NEM:US) and Alcoa Inc. (AA:US)
Apache plans to invest about $1.9 billion in Australia this year, including the Coniston and Balnaves oil projects and the Julimar development, the company said.
To contact the reporter on this story: James Paton in Sydney at firstname.lastname@example.org
To contact the editor responsible for this story: Jason Rogers at email@example.com