Jemena delivers more gas to NSW and ACT

Jemena Managing Director Paul Adams said demand for gas in NSW remained strong, despite a challenging short-term outlook driven by tighter domestic supply.

Jemena Managing Director Paul Adams said demand for gas in NSW remained strong, despite a challenging short-term outlook driven by tighter domestic supply.

Jemena has 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.

The EGP is a 797 km pipeline transporting gas from Victoria’s Gippsland Basin to the ACT, Sydney and regional New South Wales. Commissioned in 2000, the new EGP was recently expanded with the near $150 million installation of 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 it transported 100 per cent of the gas used in the state. The EGP can now transport at least 22 PJ more gas each year into NSW – enough to supply one million NSW homes for a year.

Jemena Managing Director Paul Adams said demand for gas in NSW remained strong, despite a challenging short-term outlook driven by tighter domestic supply.

“We expanded the EGP so we can keep gas competitive by moving more much needed supply into NSW.

“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.”

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 Mount Isa. Work on this new pipeline is progressing, with first gas scheduled to flow to customers in 2018.

The company has also increased capacity on the Queensland Gas Pipeline (QGP) by 7 per cent.

“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.”

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