Construction commences of processing facility to recycle CO2 from the Longford Gas Conditioning Plant

MELBOURNE, Australia – Esso Australia Pty Ltd (‘Esso’, a subsidiary of ExxonMobil Australia Pty Ltd) has announced that construction of a new Air Liquide facility that will capture and reuse Carbon Dioxide (CO2) extracted from Gippsland gas has commenced.

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Construction commences of processing facility to recycle CO2 from the Longford Gas Conditioning Plant
  • Agreement between the Gippsland Basin Joint Venture and Air Liquide Australia will see CO2 extracted from Gippsland gas reused in Australian industries
  • Air Liquide are constructing a new processing facility to recycle CO2 from the Longford Gas Conditioning Plant
  • Modifications will be made to the Longford Gas Conditioning Plant to support the process
  • CO2 extracted from Gippsland gas will be purified to food and beverage quality for use by Australian businesses 

Dylan Pugh, Chair of ExxonMobil Australia, said that construction of the Air Liquide facility next to the Longford Gas Conditioning Plant will allow CO2 captured during the processing of Gippsland gas to be processed and purified to food and beverage grade quality. 

“CO2 is a valuable and in-demand gas, typically used by the food, beverage, hospitality, manufacturing and medical industries for a variety of important functions that are essential to everyday life,” said Pugh.

“Esso Australia is actively pursuing opportunities to provide CO2 from our operations to customers for beneficial use, supporting our own emissions reduction goals while maintaining our supply of essential energy to Australia.”

Esso Australia’s reliable supply of natural gas is powering Australian jobs, providing the energy used by local manufacturers, hospitality venues, medical facilities and construction firms, and supporting the countless industries and people who rely on their products and services.

“We’re committed to exploring innovative ideas and leveraging our extensive energy network to contribute to the decarbonisation of Gippsland gas,” said Pugh.

“Decarbonising Gippsland gas presents opportunities for the Gippsland region to maintain its role as one of Australia’s significant energy hubs, supporting local jobs and our ongoing supply of energy Australians rely on.”

“The construction of this new facility will bolster the local economy by generating approximately sixty new jobs in the region throughout its construction and operations,” Pugh continued.

Shiva McMahon, BHP Petroleum General Manager Australia, noted the importance of the facility. 

“This is a significant milestone for us and a terrific outcome for the community. This new facility will make our operations more sustainable, provide a valuable product for other sectors in the economy, and create new local jobs and business opportunities.

“I thank our partners Esso Australia and Air Liquide for their collaboration and look forward to seeing this project come to fruition.”

Tim Kehoe, Air Liquide Australia Managing Director, said that Air Liquide looks forward to working with the Gippsland Basin Joint Venture to capture and process CO2 in 2023 when our state of the art CO2 processing facility is commissioned.

“The facility will not only contribute to the sustainability of our operations, but will also offer additional support to our customers in the Food and Beverage, Medical, Water Treatment and Industrial markets,” he continued.

Under a long term agreement announced in 2021, Esso Australia will capture and send excess CO2 from the Longford Gas Conditioning Plant to Air Liquide, who will then process and provide the in-demand gas in various forms across Australian businesses.

The Gippsland Basin Joint Venture is a 50-50 joint venture between BHP Petroleum (Bass Strait) Pty Ltd and Esso Australia Resources Pty Ltd, operated by Esso Australia Pty Ltd.

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