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Katnook under construction

New gas processing plant in the Otway Basin.

Assessment report coverOn-ground activities have begun at Beach Energy’s $22 million Katnook gas processing facility in the state’s South East following approval from the Department for Energy and Mining. The approval involved a robust review of design documents, risk assessments and supporting management systems.

Located on the decommissioned Katnook gas plant site near Penola, the facility will condition raw gas from Beach’s Haselgrove 3 well, producing an initial design maximum of 10 terajoules of natural gas into the South East Pipeline System for local industries and domestic distribution.

Figure 1 shows a conceptual model of the new facility which includes a slug catcher (collects ‘slugs’ of liquids from inlet flow lines and prevents ‘choking’ of the process plant), mercury removal unit, dew point control unit, gas–condensate separation, condensate load out facility, gas metering and gas export to the South East Pipeline System.

First gas to market is expected to flow by the end of the year.

Figure 1

Figure 1 Conceptual model of the Katnook gas facility.


Beach’s operations in the South Australian Otway Basin are being supported by grants from the South Australian government’s PACE Gas scheme and the Commonwealth Government’s Gas Acceleration Program (GAP) scheme, both with objectives to bring new gas into the local energy market.

In September 2017 Beach commenced drilling Haselgrove 3 targeting the Sawpit Sandstone and shallower Pretty Hill Sandstone, and in January 2018 Haselgrove 3 was announced as a new natural gas field discovery.

In May 2019 Beach commenced the drilling of Haselgrove 4 to appraise the Haselgrove Field. A further exploration well approximately 20 km west of Penola, Dombey 1, will also be drilled to target the Pretty Hill and Sawpit sandstones.

New supply from the Katnook facility will initially be sold into the South East Pipeline System, but if sufficient volume is found it may be delivered to other markets. With the potential for further discoveries, the department has commissioned a study into the options for South East gas transmission.

– William Hughson, August 2019

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