Jemena has signed a binding agreement with a gas exploration company that will fast-track plans to connect a large new source of gas to the east-coast gas market.

The agreement was signed with Galilee Energy to deliver the gas from Galilee Energy’s Glenaras Gas Project in the Galilee Basin in central Queensland.

The agreement fast-tracks Jemena’s plans to build a new pipeline delivering gas produced by Galilee Energy to the east coast and means Jemena will begin engaging with local communities, conducting field surveys and completing pipeline design concept works. In parallel, Galilee Energy will progress its appraisal activities at the Glenaras Gas Project to certify a proven gas resource large enough to underwrite the pipeline construction.

Galilee Energy Managing Director, Peter Lansom, said, “Galilee Energy has one of the largest uncontracted contingent gas resources on the east coast. The company’s upcoming lateral program has the potential to unlock this resource into a significant reserve position. This partnership is all about working together to get this critical gas supply option to the domestic market as quickly as possible.

“Delivering new sources of gas from projects such as the Glenaras Gas Project into the east coast gas market is the simplest way to solve the east coast gas crisis.”

Jemena Executive General Manager Corporate Development, Antoon Boey, said that to overcome the gas supply concerns currently gripping the east coast, large new sources of gas need to be produced and delivered to the market as quickly as possible.

“By undertaking the early planning works, both Jemena and Galilee Energy will be ready to proceed to front end engineering and design (FEED) on both pipeline and field development in 2019,” Mr Boey said.

This project is another key step in Jemena’s plans to expand and extend its Northern Gas Pipeline, via the Galilee Basin, to the largest gas markets on the east coast.

Construction began in July 2017 on the Northern Gas Pipeline, a 622km pipeline from Tennant Creek in the Northern Territory to Mount Isa in Queensland. Construction is progressing on schedule and is creating around 600 local jobs. First gas on the pipeline is expected to flow in late 2018.

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