Oil and Gas News

Jemena reveals big plans for Eastern Gas Pipeline

Jemena has proposed to extend the 797km Eastern Gas Pipeline (EGP) by 185km and is progressing plans to modify the pipeline to transport more gas to New South Wales.

The company is also planning to move gas bi-directionally between NSW and Victoria through the pipeline, with it extending from Horsley Park in Sydney to the Hunter Valley.

Jemena managing director Frank Tudor said the proposal would connect the Hunter Valley to existing domestic gas fields and emerging new sources of gas, including a proposed LNG import terminal at Port Kembla and another proposed import terminal at Newcastle.

“Jemena is looking to invest upwards of $400 million to extend the EGP north from Horsley Park into the Hunter Valley,” Tudor said.

“Our project is ideally placed to shore up supply for industry in the region and would be capable of servicing new gas-powered generation on the Central Coast. Our early modelling suggests an extension of the EGP would be capable of delivering upwards of 300 terajoules (TJ) per day to the Hunter Valley which can be used to generate approximately 1500MW of electricity.”

Jemena has been working on pipeline route options in the Hunter Valley and is preparing to commence community and stakeholder engagement, with a final investment devision expected by the end of 2021 and first gas flow as early as 2023.

The company also revealed plans to connect the EGP with the proposed Port Kembla LNG import terminal earlier this month.

The Port Kembla project has been placed on the NSW Government’s priority project list and will see Jemena construct a 6km gas pipeline to connect the facility to the EGP.

In addition, the plans will see Jemena modify the EGP so that it can deliver over 200TJ of gas from NSW into the Victorian market, while being able to supply up to 450TJ/per day to NSW.

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