BHP, Apache Start $1.5 Billion Macedon Gas Project in Australia

BHP Billiton Ltd. (BHP), Australia’s largest oil producer, started its $1.5 billion Macedon natural gas project, according to partner Apache Corp. (APA)

The development, Western Australia’s fourth domestic gas hub, began operating last month and has production capacity of 200 terajoules a day, Houston-based Apache said in an e-mailed statement. Melbourne-based BHP owns 71.4 percent of Macedon, while Apache owns the rest.

Western Australia faces a gas shortage, with prices tripling since 2005, according to the state’s DomGas Alliance, which represents state users such as Newmont Mining Corp. (NEM) and Alcoa Inc. (AA)

Apache plans to invest about $1.9 billion in Australia this year, including the Coniston and Balnaves oil projects and the Julimar development, the company said.

To contact the reporter on this story: James Paton in Sydney at

To contact the editor responsible for this story: Jason Rogers at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.