MEO Australia

MEO has detailed pre-FEED development plans to produce LNG (TSLNG) and Methanol (TSMP) located at Tassie Shoal, a shallow water area (~15m depth) in the Timor Sea approximately 275km north west of Darwin. The area is surrounded by a number of large, undeveloped gas fields, some of which have high (>10%) CO₂ levels which normally poses significant economic and environmental development challenges for offshore gas fields.

The unique concept of TSMP and TSLNG enables a broad range of variable quality raw gas resources to be economically produced and commercialised. TSMP converts high CO₂ raw gas into a saleable liquids product (methanol) via the conventional Steam Methane Reforming process, which eliminates expensive sub-surface CO₂ sequestration requirements. A single TSMP train requires ~1.4 TCF raw gas (~25% CO₂) for 20 years of operation.

TSLNG enables LNG production from low CO₂ or stripped CO₂ source gas, in a region where significant LNG size resources exist.



The TSMP and TSLNG are designed to be stand-alone facilities which potential to capture synergies depending on the size and quality of the raw gas from the source field(s).



MEO has received Environmental Approvals from the Commonwealth Government for the construction and operation of:

TSLNG - 3.0 Mtpa LNG plant [Granted 2004]; and
TSMP - 2 x 1.75 Mtpa Methanol trains [Granted 2002]

MEO received Major Project Facilitation status from the Commonwealth Government in 2007 and refreshed in 2009 for TSMP and TSLNG.

In comparison with onshore based facilities, locating the plants on Tassie Shoal reduce development costs significantly by:

• Avoiding pipeline construction to shore based plants.
• Use of indirect sea-water cooling, compared with air cooling.
• Ability to utilise pre-fabrication and pre-commissioning of the plants, on gravity based and self-elevating platform bases, entirely in low-cost South-East Asian heavy construction facilities. Modules are then transported and located at Tassie Shoal.
• Reducing sail time to Asian LNG and Methanol markets, by 1-2 days.

In comparison with a Floating LNG solution, locating a LNG facility at Tassie Shoal reduces development costs significantly by:

•  Use of shallow water platforms
• Elimination of a swivel/turret
• Avoidance of motion issues for process equipment
• Avoidance of space and cost impacts for a platform holding accommodation as well as process equipment

Evans Shoal
The Evans Shoal gas field (NT/P48) is directly adjacent to NT/P68 containing the Heron and Blackwood discoveries. Santos and their joint venturers are in the final years of their exploration permit with plans to appraise the Evans Shoal discovery which is slated to contain circa 6.6TCF of high CO² (~28%) gas. In October 2011 Santos reached an agreement to divest their 40% interest in the Evans Shoal field for up to US$350 million dollars.

Barossa/Caldita
ConocoPhillips and their joint venturers are in the process of appraising the Barossa and Caldita gas fields which are jointly slated to contain circa 3.5 TCF of high CO₂ (>13%) gas.

Heron/Blackwood
Eni and MEO are currently engaged in an appraisal program of the fields, pending which development options will be evaluated.

Greater Sunrise
Woodside and their joint venturers are currently reviewing a proposed 4 Mtpa Floating LNG option for the greater than 5 TCF gas resource located at Greater Sunrise, which straddles the Australian and Timor-Leste maritime boundary. No development FID has yet been made.