The Australian energy infrastructure company Jemena (60% State Grid Corporation of China, 40% Singapore Power) plans to extend its 797 km-long Eastern Gas Pipeline (EGP) by 185 km from Horsley Park in Sydney to the Hunter Valley in Australia, where it would connect to existing domestic gas fields and proposed LNG import terminals at Port Kembla and Newcastle.
The EGP currently delivers 360 TJ/d (10.2 mcm/d, i.e. 3.7 bcm/year) from Longford in Victoria’s Gippsland region to Sydney and Canberra, accounting for around half of the gas consumed in New South Wales each year. Jemena plans to extend the gas pipeline to deliver up to 300 TJ/d (3.1 bcm/year) to the Hunter Valley, enough to supply around 1,500 MW of power capacity. The company also plans to modify the pipeline so it can transport 25% more gas to New South Wales (up to 450 TJ/d, i.e. 14.5 bcm/year) and move gas bi-directionally between New South Wales and Victoria (up to 200 TJ/d, i.e. 2.1 bcm/year to the Victorian market). Total investment is estimated at AUD400m (US$285m). Jemena expects to make a Final Investment Decision (FID) on the EGP Horsley Park to Hunter Valley extension project by the end of 2021, with first gas to flow as early as 2023.