Esso Australia Resources (a subsidiary of ExxonMobil Australia) will soon embark upon a $400 million project to replace a 187-kilometre pipeline to transport crude oil and condensate between its Longford and Long Island Point facilities in Victoria.


The pipeline will allow the continued safe delivery of crude oil and condensate and ensure that natural gas from offshore Gippsland operations continues to flow to Australia households and businesses.


The pipeline replacement has received full project funding from Esso Australia Resources and Gippsland Basin Joint Venture partner BHP Billiton. Each have a 50 percent interest in the project, with Esso Australia Resources acting as the operator.


Pending regulatory approval, the construction of the replacement pipeline is expected to begin in late 2015.


“With an approximate project cost of AU$400 million, the replacement pipeline represents another significant investment in the continuation of our Gippsland operations, which have provided crude oil, condensate, LPG and natural gas to the Australia market since operations began in 1969,” said Richard Owen, ExxonMobil Australia Chairman.


Mr. Owen said it is anticipated that, at its peak, the project will generate approximately 500 jobs, as well as deliver additional indirect employment opportunities.


“Development of Gippsland’s oil and gas has historically brought the region significant long-term benefits, boosting economic growth and creating new jobs,” Owen said. “Our commitment to the continued safe, reliable supply of cost-effective energy is demonstrated through this key infrastructure investment and our continuous pursuit of opportunities to reduce cost and improve productivity.”

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