QHGP Managing Director Garbis Simonian said that a contract to transport gas to the LNG facility could be enough to secure finances for the pipeline, after a previous foundational agreement to transport 50 PJ/a of gas for 20 years to Chinchilla fell through following QGC’s decision to cancel its 400-600 MW power station.
“We would be very happy to transport their gas,” Mr Simonian said. “What we need is a long-term contract with a blue chip client to transport gas in order to finance the pipeline.”
QHGP are also awaiting a decision from the State Government on electricity privatisation which would make the development of the project more attractive.
The planned 500 mm diameter, 840 km pipeline is to transport coal seam gas collected in southern Queensland gas fields near Wallumbilla, to the Newcastle, New South Wales region. It will be the third major gas supply into the greater Sydney region.
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