Jemena has completed works to convert its Eastern Gas Pipeline (EGP) to a bi-directional operation from Port Kembla, helping strengthen Australia’s energy security.
The upgrade means the 797-kilometre pipeline is now equipped to transport 200 terajoules per day (TJ/d) of new gas south from Port Kembla into south-eastern New South Wales and Victoria.
This is in addition to its existing capacity to push 350 TJ/d north into the NSW market, providing a vital flexible link between the states.
The move is a central component of Jemena’s Southern Gas Strategy, designed to address forecast gas shortages in the southern states.
By repurposing and enhancing existing infrastructure rather than building entirely new transcontinental pipelines, Jemena claims its strategy is the fastest and most cost-effective way to deliver gas to where it is needed most.
Jemena’s Managing Director David Gillespie said: “By enhancing existing infrastructure, we’re able to bring additional capacity to market before shortages materialise.
“This approach avoids consumers paying for multi-billion-dollar projects that face protracted development timelines and significant risks.”
With the Port Kembla connection complete, Jemena is now setting its sights on the next phase: making its compressor station at Wilton bi-directional. This would create a seamless pathway for gas from northern Australian fields to reach southern demand centres.
Pending the right regulatory and market signals, Jemena expects the Wilton upgrade to be operational within two years.
Gillespie said independent modelling from Rystad Energy found that regasification terminals would be able to supply price-competitive new gas to NSW and Victoria, from either northern Australia or international sources, when compared to new transcontinental pipelines.
“Globally, as we face into even greater energy uncertainty, having multiple pathways for gas to reach our large domestic markets helps reinforce Australia’s energy security as well as our ability to respond to shortages or other interruption events,” Gillespie said.
Following the Wilton works, Jemena will assess further expansion of the EGP capacity to meet evolving market conditions.
