Newcastle and the Central Coast may soon be further integrated
into the east coast gas grid with leading energy infrastructure company, Jemena,
today revealing plans to extend its 797km Eastern Gas Pipeline (EGP) from
Horsley Park in Sydney to the Hunter Valley.
Jemena is proposing to extend the EGP by around 185km and is also
progressing plans to modify the pipeline so it can transport more gas to New
South Wales and move gas bi-directionally between New South Wales and Victoria.
Jemena’s Managing Director, Frank Tudor, said the proposal
will 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,” said Mr Tudor.
“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 300TJ/per day to the Hunter Valley
which can be used to generate approximately 1,500MW of electricity.”
Mr Tudor said Jemena has been working actively on pipeline
route options in the Hunter Valley and is preparing to commence community and
stakeholder engagement.
Jemena’s EGP extension proposal complements the Commonwealth
Government’s JobMaker Plan which aims to make energy affordable for
families and businesses while supporting jobs as part of Australia’s recovery
from the COVID-19 recession.
Today’s announcement comes after Jemena revealed plans to
connect the EGP with the proposed Port Kembla LNG import terminal earlier this
month. This project – which was recently placed on the New South Wales
Government’s Priority Project List – will see Jemena construct a 6km gas
pipeline to connect the proposed Port Kembla LNG import terminal to the EGP.
The plans will also see Jemena modify the EGP so that it can deliver over 200TJ
of gas from New South Wales into the Victorian market, while being able to
supply up to 450TJ/per day to New South Wales – a 25 per cent increase on its
current capacity.
The EGP currently delivers gas one way from Longford in
Victoria’s Gippsland region to Sydney and Canberra. Since acquiring the
pipeline in 2007 Jemena has invested more than $237 million to increase its
capacity by 300 per cent so that today it is capable of transporting around
360TJ of gas per day, or around half of the gas consumed in New South Wales
each year.
“When it was commissioned in the year 2000 the EGP brought
true basin on basin competition to the Sydney gas market, which in-turn has
helped place downward pressure on gas prices over the last two decades. The EGP
extension will improve pipeline access and competition in the Hunter Valley
helping shore up reliable and affordable gas for residents and businesses in
the region,” said Mr Tudor.
Jemena expects to make a Final Investment Decision on the EGP
Horsley Park to Hunter Valley extension project by the end of 2021, with first
gas to flow as early as 2023.
--ENDS--
Jemena Media Contact
Michael Pintabona
Manager, Media and External Affairs
0428 742 804
