On March 9, 2017, production commenced at the Kipper gas and condensate field (“Kipper field”) in Victoria, Australia. Mitsui & Co. acquired a 35% interest in the Kipper field on March 3, 2016, through its wholly owned subsidiary Mitsui E&P Australia Pty Ltd.
Project development partners Esso Australia and BHP Billiton have completed the upgrade of the Longford Gas Conditioning Plant, where gas produced from the Kipper field will be processed for the sales. A ceremony was held to commemorate the completion on May 7, 2017 at the Longford Gas Conditioning Plant hosted by the plant owners Esso Australia and BHP Billiton, with attendees including Senator the Hon. Matt Canavan, Minister for Resources and Northern Australia, and representatives from Mitsui.
The Kipper field is located in the Gippsland Basin, 45km off the coast of Victoria, and is producing gas, condensate and LPG for sale in the domestic market.
Gas demand in Eastern Australia is growing rapidly and new sources of gas are being sought to ensure medium- to long-term supply. Production from the Kipper field has been welcomed by the market and industry as a new source of gas supply.
Mitsui will continue to contribute to a stable energy supply for the whole of Australia through its Australian gas projects, including the Kipper field, as well as the Casino gas field in Victoria and the Meridian coal seam gas field in Queensland. Mitsui also plans to leverage its knowledge to further develop domestic gas businesses, which are less affected by oil price fluctuations, in addition to its existing oil and LNG export businesses, thereby diversifying sources of revenue in its energy business.