The Minerva Gas Plant will process and compress gas from the offshore Minerva gas field then deliver this gas to the South East Australia Gas Pipeline and the South West Pipeline.

Failed pipeline constructor McConnell Dowell was terminated from its role in the project, which caused significant delays. Halliburton KBR then picked up the pieces of the contract.

McConnell Dowell said in a press release at the time it was responsible for all onshore works, which represented 55% of the contract value.

BHP Billiton said the new gas plant would produce up to 150 terajoules of sales gas a day, giving the company a 135 TJ per day share.

The plant will also produce up to 500 barrels a day gross of stabilised condensate.

Initial gas flow rates are expected to increase to contractual volumes by early next week following the full commissioning of the plant.

Most of the gas will be sold under contract to Pelican Point Power Station in South Australia.

Minerva is part of the BHP Billiton’s Eastern Australia Gas Strategy unde3r which Victorian gas is supplied by to Victoria, Tasmania, NSW and South Australia, said BHP Billiton group president energy Philip Aiken.

“BHP Billiton is a supplier of Victorian gas to four eastern Australian states and is expected to have the highest production market share in 2005,” Aiken said.

The Minerva development consists of two subsea wells in 60 metres of water about 10km offshore from the town of Port Campbell.

Gas is transported to the coast via a single flowline to a gas processing facility where liquids are removed before piping the gas to South Australia.

BHP Billiton has a 90% stake in the Minerva development; Santos Ltd holds the remaining 10%.

At 12.30 AEDT on Tuesday, BHP Billiton shares were up 11 cents to $15.85.