Oil and Gas News

Jemena steps closer to Port Kembla pipeline approval

The New South Wales Government has prioritised a planning approval to develop Jemena’s new gas connection from the Eastern gas pipeline (EGP) to the proposed liquefied natural gas (LNG) terminal at Port Kembla (PKGT).

The company reported that the NSW Government was aiming to fast-track activities that would support the recovery of the state’s economy during and after the COVID-19 pandemic.

As part of the project, Jemena is proposing to build a 6km gas pipeline to connect the proposed Port Kembla LNG import terminal to the 797km EGP.

The company plans to invest in making the EGP bi-directional so that it can support the flow of gas to Victoria and also expand its capacity to deliver more gas to homes and businesses in NSW.

This announcement follows Jemena’s submission of plans to the government, highlighting that the pipeline would help ease east coast gas shortages. The project is set to be worth $70 million and has the potential to create more than 180 jobs in NSW and Victoria.

Jemena executive general manager of gas markets, Antoon Boey, said the company planned to be shovel ready in the event that a final investment decision is made on the PKGT.

“We welcome the announcement from the NSW Government as a vital step towards expediting this crucial gas project,” Boey said. “The proposed upgrades to the EGP are the cheapest way of bringing new gas and competition to New South Wales to help drive down costs.”

Boey added that the Commonwealth Government had articulated a strong plan to develop new sources of supply and gas infrastructure in order to support the economic recovery from COVID-19, while also shoring up reliable and affordable energy for homes and businesses across the east coast.

“Practically, our EGP project will enable the pipeline to transport over 200 TJ of gas per day into the Victorian market, while being able to supply up to 450TJ of gas per day to NSW; this is an increase of over 25 per cent of its current capacity. These changes will allow the EGP to meet almost all of Sydney’s gas demand on the coldest day of the year,” Boey explained.