Western Australia struggles with energy crisis

Businesses and government in Western Australia is reportedly struggling to find alternative source of energy after an explosion at a gas processing plant cut natural gas supplies by 30 %.

On June 3, Apache Corporation reported a pipeline rupture and fire at its Varanus Island gas processing and transportation hub offshore Western Australia. The majority of the gas delivered through Varanus Island is supplied to industrial customers.

Local media said energy and mining sector executives were meeting to discuss contingency plans. But the country’s Premier Alan Carpenter said mandatory restrictions are not needed to cope with Western Australia's gas supply crisis, according to The Age.

No one was injured in the explosion and 153 people were evacuated following the onshore incident involving a pipeline transporting oil and gas from offshore production facilities to the island's processing facilities.

“We will begin working as soon as possible to resume production.

G. Steven Farris, Apache's president and chief executive officer

"Our priorities are the safety of our personnel; securing the facilities; assuring that the environmental impact is limited to the island; and resuming throughput of oil and gas production," said G. Steven Farris, Apache's president and chief executive officer. "No one was injured, all personnel are safe, and the rupture and fire appear to be contained on the island.

"We will begin working as soon as possible to resume production," said Farris, but he could not estimate when the site would be up and running.

Varanus Island handles approximately 30 % of Western Australia's domestic natural gas requirements.