Strong year ahead as Mid West oil and gas projects gather momentum

More than $23 billion is projected to be pumped into WA’s oil and gas sector, according to one industry peak body, which is predicting a strong year for the Mid West resources sector, despite the arrival of COVID at a Yalgoo mine site. Australian Petroleum Production and Exploration Association WA director Claire Wilkinson highlighted projects from Mingenew to Cataby as examples of a huge investment in the industry, which she said is likely to set up Australia as a “standout” region alongside the Middle East. “It was a fantastic year and we look forward to more investment in WA and the Mid West in 2022 that will help create more local jobs, support the community and secure our cleaner energy future,” she said. One major project broke ground in Dongara late last year. Mitsui E&P’s $768 million Waitsia Gas Project began its stage two development, which is projected to bring 200 jobs to the town during construction, including a bulk earthworks contract for Indigenous-owned Gnarla Barna Civil & Mining. Mineral Resources’ Lockyer Deep 1 project near Mingenew has been touted as a significant discovery for conventional gas. Drilling was completed towards the end of 2021, with gas production tests in the first quarter of 2022 to provide an indication on the possibility of a production well. Another confirmed gas discovery at Strike Energy’s Walyering-5 site near Cataby is set to add to their West Erregulla operations, as well as the developing Project Haber Urea plant outside of Geraldton. Project Haber received expressions of interest for fertiliser offtake 2½ times the plant’s projected production capacity. Construction is expected to begin in early 2023, with more than 1000 jobs created in the building phase. “Last year was a strong year for the natural gas industry, particularly in Western Australia, including the Mid West thanks to our significant resources and the ongoing demand for gas. The strength of the investment pipeline underscores the demand and long-term role of natural gas in powering our homes, hospitals, mines and businesses,” Ms Wilkinson said. “From the Waitsia project near Dongara, to Mineral Resources’ significant gas discovery near Mingenew, to Strike Energy’s West Erregulla and its exciting Project Haber plans near Geraldton, the Mid West is an important hub of oil and gas activity in Australia.”