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26 October 2006
Melbourne: Esso Australia Resources Pty Ltd,
an Exxon Mobil Corporation subsidiary, has completed another stage of the $250
million capital upgrade of the Long Island Point (LIP) gas processing plant
near Hastings in Victoria.
The latest stage of development,
which cost $30 million, has seen the construction of a new compressor unit
and, as a result, an increase in the pipeline capacity to Australia’s leading
plastics manufacturer, Qenos.
The full upgrade program at LIP
includes a new Control Room, the refurbishment of LPG refrigerated storage
tanks, a fire water system upgrade and new plant emergency shutdown system.
The capital works program involves a workforce of around 100 people and is
expected to be complete within the next 18 months.
LIP
Operations Superintendent, Andy Noble, said the new compressor unit now allows
LIP to pipe an additional 20 percent of ethane to Qenos in Altona.
“This will ensure that Qenos can fully utilise its recently expanded
production capacity,” he said. “The new unit also has additional gas
purification capability, which means that we can offer a greater quality
product to our customers.”
Ethane is the gas raw
material used in the manufacture of ethylene, the primary building block for
plastics such as polyethylene and polystyrene. These plastics are used to
manufacture end products such as such as polyethylene piping and rotational
moulded water tanks which are used in a range of water management activities.
Other end products include food wraps, milk and juice bottles, mobile garbage
bins, crates, wire and cable, bags and polystyrene foam.
Esso
Australia Production Operations Manager, Louise McKenzie, said: "The
completion of the upgrade and the investment we have made here at LIP
underlies ExxonMobil’s commitment to Bass Strait gas and supporting the
Victorian economy, as well as our aim to continually add value to our
important downstream customers.”
“When we consider the
importance of our oil and gas production to Victoria both in terms of
delivering reliable energy as well as creating jobs and underpinning many
value adding industries, it is important that LIP continues as a high quality
and reliable facility,” she said.
Qenos General Manager
– Operations, Iain Gilmore, said that the new compressor installation at LIP
represents another key component in a series of recent major investments for
the refining and petrochemical industry.
“This further
investment in the upstream supply chain infrastructure strengthens the future
operations of Qenos and its supply of polyethylene products to the Australian
market,” said Mr Gilmore.
Esso Australia’s Gippsland
operations, of which Long Island Point is an important part, is a significant
contributor to growth in Victoria. It is estimated to have contributed about
$7.4 billion annually to Victoria’s gross state product, and has stimulated
more than 50,000 jobs in the Victorian labour market since production began.
Since opening in 1969 over 3.5 billion barrels, approximately two-thirds of
Australia’s cumulative oil production, has passed through Long Island Point,
as well as 650 million barrels of natural gas liquids (NGLs).
Media Contact:
Rebecca Arnold 03 9270 3478 / 0403 603 702
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