Jemena today announced the official opening of the Eastern Gas Pipeline (EGP) expansion, which has increased capacity on the pipeline by 20 per cent to meet growing demand for natural gas on Australia’s east coast.
A vital link connecting gas from Victoria’s Gippsland Basin to the east coast market, the EGP can now transport at least 22PJ more gas each year into NSW. That’s enough gas to supply around one million NSW homes for a year.
The almost $150 million project involved installing two new midline compressor stations at East Gippsland and Michelago, plus additional delivery facilities at Wilton.
The EGP supplies more than half the gas consumed in NSW, and on many occasions this year has transported 100 per cent of the gas used in the state.
NSW is a critical market for Jemena. The EGP feeds into the company’s distribution network, which delivers natural gas to more than 1.2 million homes and businesses across Sydney and in regional NSW.
Jemena Managing Director Paul Adams said demand for gas in NSW remained strong, despite a challenging outlook in the short term driven by tighter domestic supply.
“We expanded the EGP so we can keep gas competitive by moving more much needed supply into NSW,” he said.
“Last year, we connected more than 44,000 new customers to gas. Over the next five years, we expect to add more than 185,000 new customers to our network, so they can also enjoy the benefits of affordable, reliable, responsive and low emissions natural gas.”
The EGP expansion is the latest project to enhance Jemena’s gas transmission network.
Mr Adams said Jemena had committed to invest nearly $1 billion in its pipeline assets over the last few years, increasing capacity and establishing new delivery points to offer customers even more competitive and reliable transport and storage options.
Jemena is currently preparing to build the $800 million Northern Gas Pipeline (NGP), which will link the gas reserves of the Northern Territory with markets on the east coast through Mt Isa.
Work on this new pipeline is progressing, with first gas scheduled to flow to customers in 2018.
In 2015, Jemena increased capacity on the Queensland Gas Pipeline (QGP) by seven per cent, delivering around 10 TJ/day of additional firm capacity. The QGP delivers gas from the Surat/Cooper Basin to customers in and around Gladstone and Rockhampton.
“With gas production, consumption and exports all forecast to grow over the next two decades, we see real prospects to expand our existing transportation network and build alternative routes from gas fields to market,” Mr Adams said.
“New routes and delivery points in Australia’s pipeline network means more choice and flexibility for shippers. More competition in the gas transport sector can only help drive prices down for customers and keep gas an integral part of the national energy mix.”
Jemena owns and manages some of Australia’s most significant gas and electricity transportation assets:
- The Eastern Gas Pipeline - this links the Gippsland Basin and New South Wales, supplying more than half the gas consumed in New South Wales
- The Queensland Gas Pipeline – this links the Wallumbilla gas hub in south central Queensland to large industrial gas users in Gladstone and Rockhampton.
- The VicHub – this pipeline interconnect facility situated at the Longford Compressor Station enables gas to flow bi-directionally between the Eastern Gas Pipeline and the Victorian gas transmission system
- The Colongra Gas Storage and Transmission facility
- The Jemena Gas Network (JGN) - distributes natural gas to 1.2 million homes and businesses in Sydney, Newcastle, the Central Coast and Wollongong and more than 20 country centres
- The Jemena Electricity Network (JEN) - distributes electricity to more than 320,000 customer sites in an area of over 950 square kilometres of north-west greater Melbourne.
Right now, we are building the $800 million Northern Gas Pipeline, which will connect the vast gas reserves of the Northern Territory to the east coast market.
About the Eastern Gas Pipeline:
The EGP is a 797km pipeline transporting gas from Victoria’s Gippsland Basin to Sydney, the ACT and regional New South Wales. Commissioned in 2000, the EGP was recently expanded, with the installation of two new midline compressor stations at East Gippsland and Michelago, plus additional delivery facilities at Wilton.