AFR29 Jul 2019 19:38
Jemena eyes NAIF to back $600m Galilee gas pipeline
The project is part of a potential $3 billion-$4 billion pipeline expansion linking the Northern Territory's gas pipelines to the east coast grid.
Gas pipeline developer Jemena is eyeing the Northern Australian Infrastructure Facility to help fund a proposed $600 million pipeline that would connect Queensland's inland Galilee Basin to the gas grid and provide more fuel into the stretched east coast market.
Support from the NAIF could enable a larger, more economic pipeline being built from the start, helping reduce the cost of gas delivered through it, David Green, general manager of gas strategy and business development, said in an exclusive interview.
He was speaking as Jemena announced the proposed route for the 585-kilometre Galilee Gas Pipeline, which would link ASX-listed Galilee Energy's Glenaras gas project near Longreach into Jemena's existing Queensland Gas Pipeline.
Gas pipeline developer Jemena is eyeing the Northern Australian Infrastructure Facility to help fund a proposed $600 million pipeline that would connect Queensland's inland Galilee Basin to the gas grid and provide more fuel into the stretched east coast market.
Support from the NAIF could enable a larger, more economic pipeline being built from the start, helping reduce the cost of gas delivered through it, David Green, general manager of gas strategy and business development, said in an exclusive interview.
He was speaking as Jemena announced the proposed route for the 585-kilometre Galilee Gas Pipeline, which would link ASX-listed Galilee Energy's Glenaras gas project near Longreach into Jemena's existing Queensland Gas Pipeline.
Jemena opened the Northern Gas Pipeline from the NT to Queensland early this year. Supplied
It represents the eastern part of a potential $3 billion-$4 billion expansion and extension of Jemena's new $800 million Northern Gas Pipeline (NGP), which linked the Northern Territory's gas pipelines into the east coast grid through Mount Isa and started operations in January. The line, which currently carries conventional NT gas for use by Incitec Pivot at its Queensland operations, will require a lift in capacity if the vast gas resources in the Northern Territory's Beetaloo Basin prove commercially viable.
"This is a significant step forward that we see in helping to solve the gas crisis by getting that first bit of pipeline into the market from a material gas resource in the Galilee Basin," Mr Green said.
He said the line could be delivering gas into the Queensland market in the early 2020s, depending on progress by Galilee Energy on the gas production project. Work on connecting the west end of that to the NGP depends on the success of wells to be drilled this dry season by Origin Energy and Santos in the Beetaloo Basin but could be completed by the mid-2020s.
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