Emperor Energy Ltd (ASX:EMP) welcomes the completion of pre-front end engineering design (pre-FEED) by APA Group for the provision of midstream infrastructure and services related to gas to be produced from the 100%-owned Judith Gas Field in Victoria.
This is an important step in Emperor's plan to produce has from Judith in the 100%-owned VIC/P47 Permit in the offshore Gippsland Basin.
Pre-FEED documents and a summary report have been received by Emperor Energy and subsequently accepted by the board of directors.
APA has carried out the pre-feed work using a balanced combination of in-house and external expertise.
"Clear understanding of project design"
Director Phil McNamara said: “The completed pre-FEED now provides Emperor with a clear understanding of the project design, management, time frame and costs involved in bringing the Judith Gas Field into the lucrative East Coast gas market.
"Emperor’s focus continues to be the establishment of a farm-in partner for the critical Judith 2 Exploration/Appraisal Well.
"The opportunity now also exists to kick off the feed or feasibility study early and commence the project approval process with the relevant Government Authorities to reduce the longer-term risk of approval delays.”
The scope of the pre-feed has included:
- The pre-FEED design for a Gas Processing Plant, Subsea Pipeline and Export Pipeline to connect to the Eastern Gas Pipeline;
- Refinement of indicative project cost estimates and project scheduling; and
- A budget estimate for a front-end engineering design (FEED) or feasibility study.
Emperor Energy and APA established a Memorandum of Understanding (MOU) relating to the Judith Gas Project in October 2019.
The pre-FEED is the first stage of work to be progressed from the MOU.
The design of the Judith processing plant is based on using available space adjacent to the existing Orbost gas processing plant to construct a separate gas train tailored to the Judith gas composition.
There will be operating synergies with the existing gas plant.
Sales gas would be delivered through an 11-kilometre x 250-millimetre Nominal Bore export pipeline running in parallel with the existing Orbost export pipeline.
This would then deliver gas to an upgraded Newmerella gas metering station connecting into the Eastern Gas Pipeline.
The Eastern Gas Pipeline is a key gas supply artery between the Gippsland Basin in Victoria and NSW and transports natural gas to demand centres in Sydney, Canberra and Wollongong as well as a number of regional centres.
Project execution and scheduling
The pre-FEED study provides a Project Execution Plan laying out the basis for project delivery organisation, procurement strategy, contracting strategy, fabrication methodology, logistics, construction methodology, commissioning and testing.
Key regulatory approvals required for the project are identified and a detail project schedule has been analysed.
The study indicates that a final investment (FID) could be achieved 14 months after commencing the project front end engineering (FEED) otherwise referred to as a full feasibility study.
Commercial operation could then be achieved within a further 38 months of the FID.
A budget estimate of the cost of the FEED has been forecast at A$9 million.