BY ISABEL EVERETT
Newcastle may soon be further integrated into the east coast gas grid.
Energy infrastructure company, Jemena, revealed plans on Monday, to extend its 797km Eastern Gas Pipeline (EGP) from Horsley Park in Sydney to the Hunter Valley.
Jemena
is proposing to extend the EGP by around 185km and is also progressing plans to
modify the pipeline so it can transport more gas to New South Wales, and move
gas bi-directionally between New South Wales and Victoria.
Jemena’s Managing Director, Frank Tudor, said the proposal will connect the Hunter Valley to existing domestic gas fields and emerging new sources.
This includes a proposed LNG import terminal at Port Kembla and another proposed import terminal at Newcastle.
“Jemena
is looking to invest upwards of $400 million to extend the EGP north from
Horsley Park into the Hunter Valley,” said Mr Tudor.
“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."
"Our early modelling suggests an extension of the EGP would be capable of
delivering upwards of 300TJ/per day to the Hunter Valley which can be used to
generate approximately 1,500MW of electricity.”
Mr Tudor said Jemena has been working actively on pipeline route options in the Hunter Valley and is preparing to commence community and stakeholder engagement.
Jemena expects to make a Final Investment Decision on the EGP Horsley Park to Hunter Valley extension project by the end of 2021, with first gas to flow as early as 2023.
