Black Mountain clips ticket for Western Australian gas exports

6 October 2021 10:17

US energy company Black Mountain Energy has secured a government exemption granting permission to supply future natural gas from the developing Valhalla Natural Gas project in Western Australia’s energy-rich Canning Basin.

The WA state government exercised some discretion on tight export restrictions, placing the private company in a commanding position to supply gas from future production removed from existing WA pipeline infrastructure.

The exemption follows a decision made by the McGowan Labor government in the interests of economic and industrial development last month to amend a domestic gas policy, previously heavily restricting the export of the state’s gas to the Eastern States or overseas.

Provisions negotiated under the exemption require the BME to support pipeline infrastructure that connects the Canning Basin to the WA pipeline network. It is also obligated to assist with further development in the basin, enabling a new gas supply for the local market.

“The Valhalla project is a globally significant undeveloped resource in the Canning Basin,” executive chairman Rhett Bennett said.

“With the support of the Traditional Owners in the area, we expect to facilitate another ‘shale revolution’ that would put significant downward pressure on energy prices.

“This revolution would also lead to exploration and investment opportunities supporting local communities, traditional owners, Western Australian jobs, and the transition to clean energy.”

The company is seeking necessary approvals ahead of proceeding with the project.

About Black Mountain

 Black Mountain is a United States-based natural resources operator founded in 2007, which has invested more than $US2b in natural resources assets globally.

BME specialises in identifying and capturing high-growth opportunities within the energy and natural resources space. The company has deep expertise in the onshore tight gas sector, from exploration to development and production.

BME has operations in two countries, including Australia. It has safely drilled more than 2,750 tight gas wells using hydraulic fracture stimulation techniques and has safely operated and monitored more than 19,000 wells.


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