BHP Billiton Limited, together with its joint venture partner Esso Australia Resources Pty Ltd, today announced that natural gas commenced flowing through Bass Strait's newly constructed Bream pipeline.  

The Bream pipeline is the fourth Bass Strait gas pipeline which runs from the existing Bream A offshore platform into the joint venture’s Gippsland production network at the Longford processing facilities.

The Bream oil and gas field was discovered in April 1969 and has been producing oil since 1988. Until now, all Bream gas has been reinjected into the Bream reservoir.

“The new Bream pipeline will now allow the production of these gas reserves at a time when demand for Bass Strait gas is increasing. Gippsland gas from Bass Strait now supplies Victoria, New South Wales and Tasmania, and from 2004 will flow into South Australia and the Australian Capital Territory,” said Terry White, Vice President Bass Strait, BHP Billiton Petroleum Pty Ltd.

While around five trillion cubic feet of gas has been produced from Bass Strait, this represents only 50% of its proved reserves

“The pipeline will also access and accelerate the production of around 30 million barrels of hydrocarbon liquids (BHP Billiton share 15 million barrels) over a 10-year period,” said Terry.

Key facts about the Bream gas project include:

• Pipeline construction commenced in January 2002 and was completed in December 2002
• Approved cost of the project is A$200 million (BHP share A$100 million)
• The 51km pipeline runs 46km offshore from the Bream A platform, across the Gippsland coast near Paradise beach and then continues a further 5km onshore to Longford
• The 14" diameter pipeline has the capacity to carry in excess of 200 million standard cubic feet of gas a day