IntroductionThis newsletter is one in a series intended to keep the community informed about the construction and commissioning of the Gas Conditioning Plant (GCP) at Esso’s existing Longford facilities near Sale in South Eastern Victoria, outlining progress to date and highlighting key upcoming activities. As the GCP nears completion and start-up, further targeted engagement is planned in the coming months to ensure neighbours are aware of these activities at all stages of the process.

BackgroundThe GCP is being constructed on private land already occupied by Esso, zoned for industrial use and adjacent to the existing Longford facilities. The GCP will process gas associated with the largest domestic gas development on Australia’s eastern seaboard, the multi-billion dollar Kipper Tuna Turrum (KTT) Project.

Recent Progress • Construction is well progressed with foundations,

underground drains complete, major steel installation complete, pipe work and connections well advanced and instrument and electrical installation in progress

• Fabrication of tanks is complete • Rehabilitation of temporary construction areas has

commenced• Use of the permanent storm water drainage system has

commenced• Pre-commissioning works have commenced and

planning for start-up activities is being finalised

1 The Gas Conditioning Plant is being developed by Esso Australia as part of the Gippsland Basin Joint Venture in which Esso Australia Resources Pty Ltd (EARPL) and BHP Billiton Petroleum (Bass Strait) Pty Ltd each have a 50 percent interest. The Turrum and Tuna developments are also part of the Gippsland Basin Joint Venture. The Kipper joint venture participants are Esso Australia Resources Pty Ltd (32.5% and Operator), BHP Billiton Petroleum (Bass Strait) Pty Ltd (32.5%) and Mitsui E&P Australia Pty Ltd (35%).

Key Upcoming Activities • Complete construction of site roads• Complete pipework and mechanical connection of all

equipment• Complete connections to integrate the GCP into the

existing Longford processing facility• Testing, commissioning and start-up of the GCP

GCP Start-up and CommissioningAs construction of the GCP nears completion, a commissioning period will follow in order to test safety systems and the performance of the GCP. Testing of various parts of plant equipment is scheduled to commence in late May. Pipe testing will occur over approximately 6 weeks. To minimise disruption to our neighbours such testing will only be conducted from 8am to 8pm on weekdays and 8am to 1pm on Saturdays. Noise associated with some of this testing may be more noticeable during this time.

Longford Gas Conditioning Plant ProjectCommunity Update - May 2016Newsletter No 5

Aerial view of the GCP Construction Site, looking south west

GCP Safety Briefing

N

GCP Amine Solution Storage Tank

GCP Process Area

Once start-up of the GCP commences, some changes will be evident at the GCP site. This includes the commissioning of an extra flare at the Longford Plants and a shift from typical construction noise to that more associated with an operating plant. A key preparation for start-up will be a series of tests of the emergency shutdown systems. During some of these tests, for a short period of time flaring and noise from the GCP may be more noticeable. The GCP flare is located to the south of the site. The flare is a safety device and a vital part of keeping the GCP running safely and reliably. Esso will provide neighbours with notification prior to the commencement of these tests using the Longford Plants notification service, WHISPIR. For further details or to register to receive updates please contact the Longford Plants on (03) 51496206.

Emergency Response PlanningEmergency preparedness and response arrangements in place for the existing Longford facilities have been revised to include the GCP. Arrangements for the GCP are aligned with the practices currently in place at the Longford Plants. Local emergency services and the Wellington Shire Council have been consulted throughout this process and attended the GCP site for a familiarisation visit earlier this month.

Safe Start-up Preparation

As start-up of the plant approaches, construction, commissioning and plant operations teams are continuing to work closely to plan and implement measures to ensure start-up activities are conducted safely. This involves

identifying hazards and controlling risks at the site as activities move from construction to energising equipment and progressively transitioning into gas processing operations. Measures include ongoing communication with the workforce, specific training for personnel and working with the existing facilities operating team.

Regulatory Engagement Regular engagement with the Environment Protection Authority Victoria (EPA) and WorkSafe Victoria has been undertaken throughout the project. The EPA visited the GCP earlier this month and WorkSafe Victoria will visit the GCP site prior to start-up. These visits provide the regulators with an opportunity to inspect the GCP and verify appropriate controls and processes are in place to ensure:• Impacts to the environment are minimised in

accordance with the GCP Works Approval and the Longford Plants Environmental Licence

• Hazards and risks of the facility have been identified and are being managed in accordance with the Longford Plants Safety Case, to comply with Victorian Occupational Health and Safety legislation

Contributing to the Local EconomyEsso has a strong track record of supporting contractors and suppliers in the region. As the construction phase of the project draws to a close in 2016, over 1,500 people will have worked on the site and directly contributed to delivering the project. Up to 90 percent of the workforce has been sourced from the Gippsland Region. Many Gippsland suppliers have directly contributed various goods and services to the construction of the GCP, with local content accounting for around 70 percent of overall project spend. Local businesses have also benefited indirectly from the project through the supply of support services such as accommodation, food and transport.

FeedbackFurther information on Esso’s activities at Longford Plants is available at www.exxonmobil.com.au/longfordgcp or ExxonMobil Australia Pty Ltd Telephone (03) 9270 3333.

Location of Flares – Longford Plants

Esso personnel in a future gas processing area, as part of start-up familiarisation walk