Jemena has submitted plans to the New South Wales Government to connect a proposed LNG import terminal at Port Kembla to the Eastern Gas Pipeline (EGP).
Jemena has also advanced plans to modify the EGP to allow surplus gas to flow to Victoria, thereby avoiding gas shortfalls which are forecast from 2022.
Managing Director, Frank Tudor, said the project will enable new gas from Port Kembla to reach areas of demand in Victoria and New South Wales.
“As a first step, we’re looking to be shovel ready so we can commence construction of a pipeline to connect the proposed import terminal with the east-coast gas grid. From here, our broader plan is to modify the EGP so it is bi-directional and can be used to flexibly transport gas between densely populated areas like Sydney and Melbourne depending on demand and the dynamics of the gas market.”
“If modified to carry significant new volumes of gas from Port Kembla south, a bi-directional EGP would virtually solve forecast gas shortages across the east coast, bring competition to southern markets, assist in Australia’s transition to a low-carbon future, and maintain downward pressure on gas prices for customers.”
Jemena estimates it would invest around $70 million in the project and that it would create over 180 jobs across regional New South Wales and Victoria.
“Once the Port Kembla LNG import terminal project gives us the green light, we will be able to quickly mobilise to the field, and anticipate having the project completed in around 12 months.”
Mr Tudor said Jemena’s strategy to deliver gas from a new import terminal at Port Kembla to both the NSW and Victorian is part of the Group’s Northern Growth Strategy.
“Both strategies are designed to create an interconnected network of gas pipelines and assets.”
In early 2019, Jemena commissioned the $800 million Northern Gas Pipeline (NGP), which transports gas from the Northern Territory to the east-coast gas grid. Jemena has also built new assets and made new acquisitions, including the Atlas Gas Pipeline and Darling Downs Pipeline Network.
