Jemena has revealed its proposed pipeline alignment for the Galilee Gas Pipeline (GGP), with the electricity infrastructure company expecting to make a $600 million investment in the project.
Public consultation and broad stakeholder engagement is expected to commence in 2020.
The proposed pipeline is designed to connect gas from Galilee Energy’s Glenaras Gas Project near Longreach, Queensland, to Jemena’s Gas Pipeline near Injune. It will span 585km and will include two compressor stations, two mainline valves and two scraper stations.
Jemena expects to invest around $600 million in the GGP which will deliver significant economic benefits to the local community via direct and indirect employment.
The announcement comes 18 months after Jemena signed a memorandum of understanding with Galilee Energy to work together towards agreed development milestones which will fast-track the delivery of gas from the Galilee Basin to the east coast domestic market.
Jemena’s Executive General Manager of Gas Markets, Antoon Boey, said Jemena expects the pipeline will initially transport 200TJ of gas per day, although it may be designed with a larger diameter to accommodate greater future volumes.
“We’re encouraged by the strong productivity observed by Galilee Energy to date as part of the Glenaras Gas Project and remain on-track to achieving our agreed development milestones so that the pipeline infrastructure is there in the event gas is proven and commercial operations begin,” Mr Boey said.
“While it is still early days, our preferred pipeline alignment represents the most efficient way of bringing much needed new gas to market taking into account local terrain and other construction conditions. We have set aside significant time to discuss the proposed route with local stakeholders and anticipate commencing that work — at this stage — in 2020.”
Mr Boey said along with selecting its preferred pipeline alignment, Jemena had also submitted its Environmental Protection and Biodiversity Conservation Act 1999 referral to the Commonwealth Government, and Voluntary Environmental Impact Statement to the Queensland Government.
The GGP project forms part of Jemena’s Northern Growth Strategy which aims to address gas shortages across the east coast.
“The best way to resolve gas shortages across the east coast gas market is to invest in developing our vast gas reserves. Jemena’s Northern Growth Strategy is designed to ensure gas transmission infrastructure is there to transport this gas as soon as it becomes available,” Mr Boey said.
Jemena’s Northern Growth Strategy commenced with the construction of the now operational Northern Gas Pipeline which connects gas from Tennant Creek in the Northern Territory to Mount Isa in Queensland.