Jemena has signed a binding agreement with Galilee Energy to fast-track plans to deliver a large source of gas from Galilee Energy’s Glenaras Gas Project, in the Galilee Basin in central Queensland, to the east-coast domestic gas market.
The agreement fast-tracks Jemena’s plans to build a new pipeline to deliver gas produced by Galilee Energy to the east coast and means Jemena will begin engaging with local communities, conducting field surveys, and completing pipeline design concept works.
In parallel, Galilee Energy will progress its appraisal activities at the Glenaras Gas Project to certify a proven gas resource large enough to underwrite the pipeline construction.
Jemena executive general manager of corporate development Antoon Boey said to overcome the gas supply concerns currently gripping Australia’s east coast, large new sources of gas need to be produced and delivered to the market as quickly as possible.
“By undertaking the early planning works, both Jemena and Galilee Energy will be ready to proceed to front end engineering and design (FEED) on both pipeline and field development in 2019 with the objective of first gas to market in 2022,” Mr Boey said.
Galilee Energy managing director Peter Lansom said the partnership was all about “working together to get this critical gas supply option to the domestic market as quickly as possible”.
Mr Boey said the announcement marked another key step in Jemena’s plans to expand and extend its Northern Gas Pipeline (NGP), via the Galilee Basin, to the largest gas markets on the east coast.
Construction of the NGP – a 622km pipeline from Tennant Creek in the Northern Territory to Mount Isa in Queensland – began in July and is progressing to schedule.
The NGP is creating around 900 jobs, with first gas on the pipeline expected to flow in late 2018.
“The simplest way to solve the east coast gas crisis is to develop new sources of domestic supply,” Mr Boey said.