Oct 17, 2017

Galilee gas deal firms Jemena’s pipeline extension plans

Galilee gas deal firms Jemena’s pipeline extension plans

Jemena and Galilee Energy will work together to deliver gas from the Glenaras gas project in the Galilee Basin in central Queensland to the east-coast domestic gas market.

An agreement signed today fast-tracks plans to build a new $500-$800 million pipeline in the region and means Jemena will begin engaging with local communities, conducting field surveys and completing pipeline design concept works.

In parallel, Galilee Energy will progress their appraisal activities at the Glenaras gas project north-west of Barcaldine to certify a proven gas resource large enough to underwrite the pipeline construction.

Jemena executive general manager of corporate development Antoon Boey said that to overcome the gas supply concerns currently gripping Australia’s east coast, large new sources of gas need to be produced and delivered to the market as quickly as possible.

“By undertaking the early planning works, both Jemena and Galilee Energy will be ready to proceed to front end engineering and design (FEED) on both pipeline and field development in 2019 with the objective of first gas to market in 2022,” he said.

Galilee Energy managing director Peter Lansom said Galilee Energy had one of the largest uncontracted contingent gas resources on the east coast.

Jemena executive general manager of corporate development Antoon Boey

“The company’s upcoming lateral programme has the potential to unlock this resource into a significant reserve position. This partnership is all about working together to get this critical gas supply option to the domestic market as quickly as possible,” Mr Lansom said.

Mr Boey said today’s announcement marked another key step in Jemena’s plans to expand and extend its Northern Gas Pipeline (NGP), via the Galilee Basin, to the largest gas markets on the east coast.

Construction of the NGP – a 622km pipeline from Tennant Creek in the Northern Territory to Mount Isa in Queensland – began in July and is progressing to schedule. The NGP is creating around 900 jobs, with first gas on the pipeline expected to flow in late 2018.

 

 

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