Leading energy infrastructure company, Jemena, has revealed the proposed pipeline alignment for the Galilee Gas Pipeline (GGP) which is planned for construction.
The announcement comes ahead of public consultation and broad stakeholder engagement which is expected to commence next year.
The proposed pipeline will span 585km to connect gas from Galilee Energy Limited’s (ASX: GLL) Glenaras Gas Project near Longreach to Jemena’s Queensland Gas Pipeline near Injune. The project will also include two compressor stations, two mainline valves, and two scraper stations.
Jemena expects to invest around $600 million in the GGP which will deliver significant economic benefits to the local community via direct and indirect employment.
The announcement comes 18-months after Jemena signed a memorandum of understanding with Galilee Energy to work together towards agreed development milestones which will fast-track the delivery of gas from the Galilee Basin to the east-coast domestic market.
Jemena’s Executive General Manager of Gas Markets, Antoon Boey, said Jemena expects the pipeline will initially transport 200 terajoules of gas per day, although it may be designed with a larger diameter to accommodate greater future volumes.
“We’re encouraged by the strong productivity observed by Galilee Energy to date as part of the Glenaras Gas Project and remain on-track to achieving our agreed development milestones so that the pipeline infrastructure is there in the event gas is proven and commercial operations begin,” said Mr Boey.
“While it is still early days, our preferred pipeline alignment represents the most efficient way of bringing much needed new gas to market taking into account local terrain and other construction conditions. We have set aside significant time to discuss the proposed route with local stakeholders, and anticipate commencing that work - at this stage - in 2020.”
Mr Boey said along with selecting its preferred pipeline alignment, Jemena had also submitted its Environmental Protection and Biodiversity Conservation Act 1999 referral to the Commonwealth Government, and Voluntary Environmental Impact Statement to the Queensland Government.
The GGP project forms part of Jemena’s Northern Growth Strategy which aims to address gas shortages across the east coast.
“The best way to resolve gas shortages across the east-coast gas market is to invest in developing our vast gas reserves. Jemena’s Northern Growth Strategy is designed to ensure gas transmission infrastructure is there to transport this gas as soon as it becomes available.”
Mr Boey said Jemena’s Northern Growth Strategy commenced with the construction of the now operational Northern Gas Pipeline which connects gas from Tennant Creek in the Northern Territory to Mount Isa in Queensland.
Click here for a map showing the preferred pipeline alignment.
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Jemena is an $11 billion company that owns and manages some of Australia's most significant gas and electricity assets. These include:
• the Jemena Gas Network servicing 1.3 million customers around NSW
• the Eastern Gas Pipeline which delivers gas from Victoria's Gippsland basin to the ACT, Sydney and regional NSW
• the Darling Downs Pipeline Network in south-east Queensland supplying Darling Downs Power Station and APLNG’s export pipeline
• the Queensland Gas Pipeline which supplies Gladstone and Rockhampton
• the Darling Downs Pipeline System which transports gas to the Wallumbilla gas trading hub, the 630MW Darling Downs Power Station, and to the feeder pipeline to the APLNG LNG liquefaction plant at Gladstone
• Jemena's Victorian electricity network which delivers electricity to over 330,000 homes and businesses in northern and western Melbourne
• the Northern Gas Pipeline from Tennant Creek in Northern Territory to Mount Isa in Queensland.
Jemena also part-owns the ActewAGL electricity and gas distribution networks in the ACT and United Energy, which supplies electricity to more than 600,000 customers across south-eastern Melbourne and the Mornington Peninsula.
More information on Jemena can be found at www.jemena.com.au