BHP Billiton Limited
), recently inaugurated the $1.5 billion Macedon domestic gas
project in Onslow, Western Australia. After receiving regulatory
and environmental approvals in Jan 2012, the Macedon project
achieved its first gas production in August this year.
The Macedon project is BHP Billiton's largest operated gas
project in Australia, with a production capacity of up to 200
terrajoules of gas per day. The project is expected to benefit
the gas market in Western Australia for the next two decades by
providing roughly 20% of the region's daily gas supply over the
The operation includes an onshore gas treatment plant at the
Ashburton North strategic industrial area and four offshore
production wells. Macedon's gas production will be supplied to
the Dampier to Bunbury Natural Gas Supply pipeline before it is
sold in the Australian market.
The project will help BHP Billiton strengthen its base in
Australia on the financial as well as environmental front. The
company has invested $865 million, roughly 60% of the total
project cost locally, contributing to the local economy.
Macedon is a joint venture between BHP Billiton and
) subsidiary, Apache Northwest, where the latter holds 28.57%
BHP Billiton has been investing in new and profitable
ventures. Earlier this month, the company started coal production
at its Daunia mine, the ninth operating metallurgical coal mine
in central Queensland, Australia. The mine is capable of
producing roughly 4.5 million tonnes of metallurgical coal per
annum and has a useful life of 30 years.
BHP Billiton's total petroleum production reached 236 million
barrels of oil equivalent in fiscal 2013, increasing 6% year over
year. Apart from Macedon, the company also has other petroleum
projects including, Bass Strait Turrum, North West Shelf Greater
Western Flank-A and North West Shelf North Rankin B Gas
Compression. With such new and profitable projects in hand, we
expect the company to flourish in the coming quarters.
BHP Billiton currently carries a Zacks Rank #3 (Hold). Other
mining stocks that warrant a look include
Denison Mines Corp.
US Energy Corp.
). Both the companies carry a Zacks Rank #2 (Buy).
APACHE CORP (APA): Free Stock Analysis Report
BHP BILLITN LTD (BHP): Free Stock Analysis
DENISON MINES (DNN): Free Stock Analysis
US ENERGY CP-WY (USEG): Free Stock Analysis
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