LIP Quarterly Update - December 2024

Last month, I had the pleasure of celebrating the official opening of our Hastings Generation Plant alongside Zoe McKenzie MP (Federal Member for Flinders), Woodside’s Liz Westcott, Esso Australia team members, and key stakeholders from the community. This $200 million investment will reduce the need for flaring at LIP and generate enough electricity to power as much as half of all the homes on the Mornington Peninsula. It’s amazing to see the team’s hard work finally come to fruition and we are excited for the plant to make its mark in the energy transition in Australia.

I also had the opportunity to join Paul Mercurio, MP (State Member for Hastings) at a business roundtable with the Victorian Treasurer and talk about the economic contribution we make to the Mornington Peninsula.

Recently we shut in production of our last crude only producing platform, Cobia, marking the end of oil production and the beginning of a new era as we transition to a modern gas business. The Gippsland Basin Joint Venture (Esso and Woodside) has now produced more than half of Australia’s crude oil and at its peak provided over 10 percent of all Australian government revenue. Although crude production has ceased, LIP will continue to process and ship condensate which is a lighter crude product from gas wells and the Gippsland Basin will remain the largest single source of gas supply to the east coast domestic market and continue to supply gas that Victoria can depend on. Through the past few years, the team at LIP have been supporting our teams at Longford and our Bass Strait facilities preparing for this transition and I would like to thank and congratulate them all for their efforts in safely achieving this transition.

As we move towards the end of the year, I want to wish everyone a safe and happy holiday season with your family and loved ones.

As always, if you have any questions about our operations, please feel free to reach me at consultation@exxonmobil.com.