Jemena Advances Bi-Directional Eastern Gas Pipeline to Boost Supply to Southern Australia
Jemena has made its Eastern Gas Pipeline bi-directional, increasing flexibility and capacity to move gas into southern Australia ahead of forecast supply shortages.
(P&GJ) — Jemena has completed upgrades to make its Eastern Gas Pipeline (EGP) bi-directional, allowing gas to flow both north and south as the company moves to address anticipated supply shortages in southeastern Australia.
The pipeline can now transport approximately 190 million cubic feet per day (MMcf/d) of additional gas south from Port Kembla toward Victoria, alongside existing capacity of about 330 MMcf/d flowing north into New South Wales. The upgrade increases system flexibility, enabling gas to be redirected to key demand centers as market conditions shift.
Jemena said the next phase of its Southern Gas Strategy will focus on adding compression at the Wilton station, which would fully reverse pipeline flows and create a new pathway for gas from northern Australia to reach southern markets. The company estimates the upgrade could be completed within two years, pending regulatory approvals and market support.
“The initial phases of our Southern Gas Strategy has connected the Port Kembla Energy Terminal, and enabled gas to flow both northwards and southwards through the EGP. With this work complete, we are now taking steps to incorporate a new compressor station at Wilton allowing the EGP to be fully bidirectional – providing a new pathway for gas to reach southern states from Australia’s northern gas fields,” Mr Gillespie said.
“By enhancing and repurposing existing infrastructure we’re able to bring additional transportation capacity to market before forecast gas shortages materialise. This approach avoids consumers paying for multi-billion-dollar infrastructure projects which face a range of risks including protracted development timelines.
“Our strategy not only introduces greater pipeline capacity, but also optionality into the market so that gas can reach southern states via a range of different solutions including onshore pipelines or via Australia’s first regasification terminal.”
Mr Gillespie said independent modelling from Rystad Energy found that regasification terminals would be able to supply price competitive new gas to NSW and Victoria, from either northern Australia or international sources, when compared to new transcontinental pipelines.
“Globally, as we face into even greater energy uncertainty, having multiple pathways for gas to reach our large domestic markets helps reinforce Australia’s energy security as well as our ability to respond to shortages or other interruption events.”