BHP Billiton awarded a $145 million engineering, procurement and construction contract which covers the construction of the onshore gas plant and construction of the offshore and onshore pipeline systems for the field.

Minerva was discovered in 1993 and is about 10 kilometres from Port Campbell and contains an estimated 300 billion cubic feet of gas and 1.25 million barrels of liquids. The field life is expected to be about 10 years.

The development will involve two subsea production wells in 60 metres of water. Design will commence immediately according to the proponents, with first construction expected to start later this year and delivery of first gas expected in the first half of 2004. There will be a single export flowline to the coast where it will come onshore in a subterranean shore crossing.

McConnell Dowell said in a press release they were responsible for all onshore works, which represented 55% of the contract value.

There will be a processing plant to strip liquids from the well stream, with a maximum design production capacity of 150 terajoules of gas per day. BHP said from the initial gas sales flow rates it expects to strip 600 barrels of condensate per day.

The bulk of the gas sales will feed the Pelican Point Power Station in South Australia, via a new pipeline crossing from Victoria to SA. In March this year, BHPB said it would provide 115 terajoules of gas per day to the power station for 10 years. This represents 90% of BHPB's gas reserves from Minerva.

The offshore component of the contract also includes dual chemical injection lines and hydraulic control lines from the onshore plant to the subsea wells.