Australian gas producer Amplitude Energy said on Wednesday it had taken a final investment decision on the development phase of the East Coast supply project, which includes the construction of production infrastructure.
The Adelaide-based company expects to spend AU$190 million to AU$210 million ($132.8 million to $146.7 million) on its share of the project's development over fiscal 2027 and 2028, with costs funded through existing cash reserves and operating cash flow.
An equal venture with OG Energy, the project is run by Amplitude.
The project is designed to connect discovered gas resources in Victoria's Otway Basin to existing infrastructure, boosting domestic gas supply to the east coast market at a time when Australia is considering rules that would require gas exporters to reserve up to 20 per cent of output for local users.
The project covers the Annie, Juliet and Artisan (AJA) fields, as well as the Nestor field subject to exploration success. First gas is targeted in 2028, with the fields expected to deliver gross production of up to 90 terajoules per day.
The Otway Basin is a major offshore gas-producing hub and a critical source of supply for Australia's south-eastern domestic energy market, according to the Australian government website.
Amplitude shares were down 2.3 per cent at AU$1.675 as of 01:02 GMT, hitting their lowest level since September 7.
(Reporting by Aamir Shaik Khalid in Bengaluru; Editing by Subhranshu Sahu)
