Australian energy infrastructure company, Jemena, has unveiled the proposed pipeline alignment for the Galilee Gas Pipeline (GGP) which is planned for construction.
The announcement comes just 18-months after Jemena signed a memorandum of understanding with Brisbane-based oil and gas exploration company, Galilee Energy, to work together towards agreed development milestones to fast-track the delivery of gas from the Galilee Basin to the east-coast domestic market.
The proposed GGP pipeline will span 585 kilometres to connect gas from Galilee Energy Limited’s 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 would deliver significant economic benefits to the local community through direct and indirect employment.
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.”
Mr Boey further detailed that while it is still early days, Jemena’s preferred pipeline alignment represents the most efficient way of bringing much needed new gas to market considering 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.”
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 added.
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.