Jemena Reveals Plans to Extend Eastern Gas Pipeline

(P&GJ) — Australian pipeline company Jemena has announced plans to expand its 500-mile (800 kilometer) Eastern Gas Pipeline from Horsley Park in Sydney to the Hunter Valley. 

Photo: Jemena

Jemena is proposing to extend the EGP by around 115 miles (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 of gas including 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,” Tudor said.

Tudor said Jemena has been working actively on pipeline route options in the Hunter Valley and is preparing to commence community and stakeholder engagement.  

The announcement comes after Jemena revealed plans to connect the EGP with the proposed Port Kembla LNG import terminal earlier this month.

This project will see Jemena construct a 6km gas pipeline to connect the proposed Port Kembla LNG import terminal to the EGP. The plans will also see Jemena modify the EGP so that it can deliver over 200TJ of gas from New South Wales into the Victorian market, while being able to supply up to 450TJ/per day to New South Wales – a 25% increase on its current capacity. 

The EGP currently delivers gas one way from Longford in Victoria’s Gippsland region to Sydney and Canberra. Since acquiring the pipeline in 2007 Jemena has invested more than $237 million to increase its capacity by 300% so that today it is capable of transporting around 360TJ of gas per day, or around half of the gas consumed in New South Wales each year.

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.

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