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$400M gas expansion announced


An energy producer is extending its liquefied natural gas development to New South Wales’ Hunter Valley region.

Jemena has confirmed new plans to expand its 797km Eastern Gas Pipeline from Horsley Park in greater western Sydney to Newcastle.

The project involves adding a further 185km of pipeline to the existing network, providing a new bidirectional supply to Newcastle and the Central Coast. This would theoretically allow gas to be transported between Victoria and the Hunter Valley. QMEB can reveal the deal is worth more than $400 million.

Multiple projects

The proponent is separately joining the pipeline to the new Port Kembla LNG Import Terminal, which the State Government declared to be a priority project. That project involves modifying the Eastern Gas Pipeline to deliver more than 200 terrajoules (TJ) of gas from NSW to Victoria. It is also promised to supply up to 450 TJ per day to NSW, representing a 25 per cent increase on the current capacity.

“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,” Jemena managing director Frank Tudor said in a public statement.

“Our early modelling suggests an extension of the Eastern Gas Pipeline would be capable of delivering upwards of 300TJ/per day to the Hunter Valley, which can be used to generate approximately 1500 megawatts of electricity.”

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A final investment decision on the Horsley Park to Hunter Valley extension is expected to be made at the end of 2021, with first gas anticipated to flow sometime in early 2023.

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