THE Reuters news agency is reporting that gas production from Bass Strait is set to receive a big boost through a new 50-50 joint venture between Esso Australia Resources and Woodside Energy.

On March 17 Reuters reported that ExxonMobil's Australian unit had announced on Monday that its Gippsland Basin joint venture with Woodside Energy has approved its final investment decision to develop the Turrum Phase 3 project, targeting underdeveloped gas resources.

The approval is for the A$350 million ($221.31 million) project, which aims to drill five new wells in the Turrum and North Turrum gas fields.

The development comes at a time when Australia’s east coast is facing a dire shortage of gas from 2027 onwards, likely to result in gas imports unless the slack can be taken up by a continuing flow of gas from Gippsland.

In a statement published by Reuters, Woodside's executive vice president and chief operating officer for its Australian operations, Liz Westcott, confirmed the new venture would help to do just that.

"The Turrum Phase 3 project, and the recently approved Kipper 1B project, will unlock additional gas that is needed to avoid future shortfalls,” she said.

"Every molecule of gas Woodside supplies from the Bass Strait fields is sold into the Australian domestic market for local manufacturers, power generators and homes."