A deal to deliver a new gas pipeline to the eastern seaboard from Mount Isa has been sealed by Jemena and Galilee Energy Limited with the proposed new pipeline to link Mount Isa to the eastern seaboard via the Galilee and the Wallumbilla Gas Hub near Roma.
Jemena is the company building the Northern Territory Government funded 622 km Northern Gas Pipeline (NGP) which links Tennant Creek in the Territory to Mount Isa in Queensland.
Galilee Energy says is a now stepping up its appraisal activities at the Glenaras Gas Project to underwrite the pipeline construction which it says is one of the largest uncontracted contingent gas resources on the east coast.
Galilee Energy Managing Director Peter Lansom says the Company’s 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, says that 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.
“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.”