Esso Australia, a part of the ExxonMobil Australia group of companies, today recognised the start of construction of a $400 million pipeline at an event near Sale. Attendees included the Honourable Lily D’Ambrosio MP, Minister for Energy and Resources, and Darren McCubbin, Mayor of Wellington Shire Council.
The 187-kilometre pipeline, which replaces an existing pipeline constructed in 1969, will transport crude oil and condensate between Esso Australia’s Longford and Long Island Point facilities in Victoria.
“This project will support the continuing supply of natural gas to businesses and households in Victoria and is part of our multi-billion dollar investment in oil and gas infrastructure in the region,” said ExxonMobil Australia Chairman Richard Owen. “This will be a major project for the Gippsland region delivering not only new jobs, but also opportunities for local suppliers.”
At its peak, it is anticipated that the project will generate approximately 500 jobs in areas like earthworks, trenching, welding and surveying, as well as additional indirect employment opportunities.
Esso Australia has contracted Nacap Australia, a Quanta Services company, to build the replacement pipeline. Nacap is expected to source the majority of the people, equipment and services required for construction from within Victoria and Australia, where possible.
“This major infrastructure project, together with the construction of the $1 billion gas conditioning plant at Longford and the $4.5 billion Kipper Tuna Turrum domestic gas project, is a testament to our continued commitment to safe, responsible operations in the Gippsland region,” Owen said.
The majority of the construction work on the replacement pipeline will take place on private land through six local councils and be completed over two seasons.
The pipeline is being constructed by Esso Australia as part of the Gippsland Basin Joint Venture, in which Esso Australia Resources Pty Ltd and BHP Billiton Petroleum (Bass Strait) Pty Ltd each have a 50 percent interest.