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Jemena plans $400m EGP extension

Jemena has today revealed $400 million plans to extend its 797 km Eastern Gas Pipeline (EGP) by around 185 km.

The plan includes extending the pipeline from Horsley Park in Sydney to the Hunter Valley and modifying the pipeline to transport more gas to New South Wales, as well as moving gas bi-directionally between NSW and Victoria.

The announcement follows Jemena’s other recently revealed fast-tracked plans to connect the EGP with the proposed Port Kembla LNG import terminal to increase gas supply.

Jemena Managing Director Frank Tudor said today’s 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 300 TJ/per day to the Hunter Valley which can be used to generate approximately 1,500 MW of electricity.”

The extension proposal ties into the Commonwealth Government’s JobMaker Plan that aims to make energy affordable for families and businesses while simultaneously supporting jobs as part of the nation’s COVID-19 recession recovery.

APGA CEO Steve Davies said the announcement proved that pipeline companies were highly responsive to developments in the market.

“This proposal, and other recent developments, will bring gas to more customers, allowing them access to lower-emissions energy and providing energy for growth in industry and commerce,” he said.

“Pipeline companies have proved time and time again that they are quick to respond to the needs of the market so that supplies of this essential energy can grow with the market and support expanding economic activity.”

Jemena has been working actively on pipeline route options in the Hunter Valley and is preparing to commence community and stakeholder engagement.  

A final investment decision on the extension project is expected by the end of 2021, with first gas to flow as early as 2023.

For more information visit the Jemena website.

If you have news you would like featured in The Australian Pipeliner contact Managing Editor David Convery at dconvery@gs-press.com.au

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