Pilot Energy says major potential natural gas source identified off Mid West coast

Energy company Pilot Energy says it has potentially identified a major offshore source of natural gas near Arrowsmith which could support its Mid West blue ammonia production plans for over 10 years. On March 9 the company announced it had identified a gas resource estimate of 450 billion cubic feet (Bcf) at its Leander Complex Gas Prospect, which is located roughly 20km from the Mid West coast. Pilot’s offshore exploration licence is one of the largest in Australia, covering an area of 350km along the Mid West coast. The area was previously explored in the 1980s for shallow oil, and Pilot Energy chair Brad Lingo said it was not a surprise to find these results based on previous findings made in the 80s. “Having access to that data, and being able to apply that to the offshore geology, that was the real breakthrough,” Mr Lingo said “We’ll only know for sure by drilling a well.” Pilot has said it intends to use the natural gas for blue ammonia production, and the amount in this prospect could support its ambitions for over 10 years. Blue ammonia production is a low-carbon process which uses natural gas to produce a transportable source of fuel. Mr Lingo said the availability of natural gas in the Mid West is another factor which makes it an optimal location for ammonia production and clean energy, with carbon capture and storage locations and renewable energy also viable in the region. “There’s a tremendous appetite for clean, carbon-free energy, in both Europe and Asia . . . what makes this project unique is it has everything in a small geography,” he said. Pilot Energy has said planning for a 3D seismic survey of the prospect is in progress, with a well to be drilled in 2025. Mr Lingo said the process would help create more jobs in the region as a Pilot’s involvement in the area continued to grow. “We’re already a substantial employer, we’ve had people working with us for 17 years now . . . and there’s a lot of work coming with our upcoming projects.”