Gippsland Basin Project to Boost East Australia Gas Supply by Winter 2027

A A$350 million (US$245 million) project in Australia's Gippsland Basin is progressing towards initial gas output, with newly drilled wells expected to augment eastern Australia's gas supply before winter 2027, Offshore Energy reported. The initiative is a collaborative effort between Esso Australia, a subsidiary of ExxonMobil, and Woodside Energy.

The Gippsland Basin joint venture has concluded an offshore drilling campaign in Victoria’s Gippsland Basin. This campaign involved the drilling of five new production wells as part of the Turrum Phase 3 development, which aims to access underdeveloped gas resources within the Turrum and North Turrum fields. The operations were conducted at the Marlin B Complex, located approximately 42 kilometres off the Gippsland coastline.

Following the completion of drilling activities, the Valaris 107 jack-up rig has been safely demobilised. This development represents a significant investment and is designed to prolong production from existing offshore infrastructure, thereby supporting gas supplies to the domestic market on Australia’s east coast.

Enhancing Regional Energy Security

Simon Younger, Vice President Eastern Australia, was cited by Offshore Energy as stating that the successful conclusion of the drilling campaign signifies an important step in maintaining Gippsland's contribution to the region’s energy supply. The project is described as among the largest east coast gas developments undertaken in the Gippsland Basin in recent years, forming part of nearly A$1 billion (US$713 million) in recent investment across the basin.

Mr Younger also confirmed the successful completion of the Turrum Phase 3 drilling campaign at Marlin B Complex, highlighting the five new wells which are expected to support future gas production from the Turrum field. ExxonMobil anticipates that Turrum Phase 3 will deliver more gas than any single Gippsland Basin joint venture development since West Barracouta, reinforcing the basin’s role as a key source of domestic gas for eastern Australia.

Domestic Market Focus and Future Outlook

This development comes as offshore operators are balancing new investments in remaining gas resources with ongoing decommissioning activities across the mature Bass Strait region. The latest investment by the Gippsland Basin joint venture, operated by Woodside, focuses on maximising existing infrastructure and developing additional resources to sustain supply to the domestic market.

According to the companies, gas produced from the Gippsland Basin is supplied exclusively to the Australian domestic market. This supply supports residential demand, manufacturing sectors, and electricity generation, including providing backup capacity for renewable energy generation.

With the drilling phase now concluded, attention is shifting towards bringing these new wells online. Turrum Phase 3 is projected to begin contributing additional gas supplies from the Gippsland Basin ahead of winter 2027, further bolstering energy security for eastern Australia, Offshore Energy reported.