Resources giant BHP Billiton says its new US$1.5 billion gas plant will supply 20 per cent of the domestic West Australian market amid hopes of doubling capacity.
The first gas started flowing in August, almost three years after BHP gave the green light to develop the Macedon field, about 100 kilometres off the north west coast of Western Australia.
The Macedon plant includes four offshore production wells and an onshore gas treatment plant at Onslow.
It has a production capacity of up to 200 terrajoules of gas per day, making it the company's largest domestic gas operation.
BHP Billiton's global head of conventional oil and gas, Steve Pastor, said the Macedon project was expected to supply domestic gas for the wholesale market in Western Australia until at least 2033.
"The operation will supply 20 per cent of the state's daily domestic gas supply for consumers and industry," Mr Pastor said.
The facility builds on the company's oil and gas operations in WA, including the North West Shelf project and the Exmouth Sub-Basin.
BHP has a 71.5 per cent stake in the Macedon joint venture, with Apache Northwest holding the remaining 28.5 per cent.
Gas from the Macedon plant will be exported to the Dampier-to-Bunbury gas pipeline for sale into the West Australian market.
Mr Pastor said the company was eager to double the future capacity of the plant to take advantage of a 400 terrajoule pipeline.
"If we're successful with exploration and that's economically viable then we could double our capacity at the current plant," he told reporters after a tour of the newly opened Macedon gas plant on Friday.
He said WA consumers would soon feel the benefit of extra gas supply.
"It improves the supply demand balance and is inevitably is going to be of benefit," he said.
BHP has also sought to allay environmental concerns due to the gas field's proximity to the sensitive Ningaloo Reef and Exmouth Gulf, saying the project reflected a "deep commitment to environmental protection".
At its closest point the Macedon pipeline is 3.9 kilometres from a nominated World Heritage Area, and 8.1 kilometres from the Ningaloo Marine Park Commonwealth Boundary.
The Macedon field was discovered in 1992 but only became commercially viable due to WA's gas shortage and high prices.
Domestic gas supply in Western Australia has been dominated by the Woodside-led North West Shelf joint venture and Apache's north west operations.
WA experienced a statewide gas shortage in 2008 when an explosion at Apache Energy's Varanus Island plant knocked out a third of the state's gas supplies for six months.
BHP also also has an interest in the Exxon-led Scarborough floating LNG remote offshore project in WA which is scheduled for a final investment decision next year.
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