Armour Energy begins commercial sale of gas from Kincora project

Armour Energy has started the commercial sale of gas from its Kincora project in Queensland, Australia, after completing recommissioning of the plant’s dry gas circuit.

The company noted that the Kincora to Wallumbilla pipeline and the new end of line facility becoming operational has assisted in delivering gas to market.

Armour Energy CEO Roger Cressey said: “This is a major milestone for Armour and a further step in our evolution toward becoming a significant oil and gas producer in the Roma region.

“The Armour team and its contractors are proud to have restarted production from this long-established gas province, particularly at a time when the Australian eastern seaboard gas market is facing an acute supply shortfall.

“This is just the beginning for Armour in terms of gas production, and we look forward to contributing to the local region and more broadly to the east coast gas market as a steady and growing supplier for the long-term.”

Starting next week, the company is planning to target gas sales of 5TJ/day.

The company is selling the gas under its agreement with Australia Pacific LNG.

Currently, gas is being produced from the Newstead gas storage facility, processed and compressed at Kincora before being delivered to market through the downstream pipeline facilities.

The Newstead storage facility has a capacity of around 2.3PJ of treated gas.

Under the next stage of Phase 1 of the Kincora restart project, gas production from existing wells will be ramped-up.

The company is planning to commission the wet gas circuit at Kincora and complete the remaining field infrastructure, including gathering flowlines and field compressors to enhance gas production to 9TJ/day.

Phase 2 of the restart project is expected to comprise drilling of new wells, as well as workovers and stimulations of existing wells.

Together, the works will allow Armour Energy to ramp-up production from the gas plant to 20TJ/day over the next 12-18 months.