OriginaEnergy has announced the completion of its $85m Inlet Compression Project at the Otway Gas Plant near Port Campbell in Victoria.


The compression facility has been constructed on site at the Otway Gas Plant, and will allow Origin to extend the life of the Thylacine field in the offshore Otway basin, and increase the scope for overall gas recovery.


Origin Chief Executive Officer Upstream, Mr Paul Zealand said, "The Otway Inlet Compression Project continues Origin's significant investment in gas exploration and production capacity in Victoria.


"This Project demonstrates how we can effectively plan for, and manage, the natural decline in production in hydrocarbon fields, and maintain gas production levels over a longer period of time," Mr Zealand said.


The Inlet Compression Project provided a boost to the local economy, with more than 200 staff and contractors employed at the peak of the Project - more than half of these employees were from the region.


"Origin has been exploring for and producing gas in the Otway Basin for over two decades. Our increased investment in this area reflects our view that this rich gas resource will play an ongoing role in meeting growing demand for lower emissions energy for south-east Australia," Mr Zealand said.


Victorian Minister for Energy and Resources Michael O’Brien welcomed the announcement, describing it as an exemplar of investment that is needed in the State to meet demand for gas.


"Gas is playing an increasingly important role in Victoria's energy mix and investments in projects like these are crucial to ensure we can meet the state's future energy needs," Mr O'Brien said.


"Demand for gas in Victoria is forecast to double by 2030, driven by increasing use of gas for power generation and our growing population and economy.


"Production from the Otway Gas Plant is equivalent to around 30 per cent of Victoria's domestic gas demand, and will also fuel the new Mortlake power station.