Apache says full gas production in Australia may take six months

SYDNEY (AFP) — Energy company Apache said on Monday it expected Western Australian gas production to be partly restored by mid-August, but that it could take six months for full production to resume after a blast at its Varanus Island plant.

The June 3 explosion forced the plant's closure, slashing Western Australia's gas supply by 30 percent and causing an energy crisis in the booming, resource-rich state with the potential to hurt the national economy.

Apache said after completing an initial assessment of the impact of the blast, it hoped to have production back to its normal level of 315 million cubic feet per day by December.

"Our estimated timetable is to restore gross production at a rate of 180 million cubic feet of natural gas per day... by August 15, ramping up to 315 million cubic feet per day in December," said Tim Wall, the managing director of Apache's local subsidiary.

"We are making every effort to meet or beat this timetable," he said in a statement.

Apache said 146 workers were carrying out clean-up and reconstruction on Varanus Island.

Western Australia's energy crisis has forced businesses to lay off hundreds of workers, according to unions, while the government has urged residents to use less electricity and gas to conserve supplies.

As a stop-gap measure, several retired coal-fired power stations have been recommissioned to meet the energy shortfall.

Apache Energy Limited is the Australian operating subsidiary of United States-based Apache Corporation, one of the world's largest independent oil and gas exploration and development companies.

- Dow Jones Newswires contributed to this story -