Page 8 - AsianOil Week 48 2020

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NSW on track to begin

LNG imports by 2023

The state’s proposed Port Kembla import terminal is closer to being realised
after developer AIE signed a new infrastructure agreement with Jemena

COMMENTARY AUSTRALIA’S New South Wales State is emerge in Victoria in 2023, the project is not
another step closer to importing its first liquefied being developed in a vacuum.
natural gas (LNG) following Australian Indus- In fact, while there are four other import pro-
WHAT: trial Energy (AIE) and Jemena’s new agreement jects on the drawing board – though none quite
Jemena has agreed to to develop essential pipeline infrastructure. as advanced – there are also two major new
connect the terminal to The two companies announced on Novem- unconventional gas projects in development in
its Eastern Gas Pipeline ber 27 that they had signed a memorandum of NSW and the Northern Territory. The prom-
(EGP). understanding (MoU) to connect AIE’s Port ise of being able to deliver gas within a couple
Kembla terminal project near Wollongong to of years should win over a fair portion of Port
WHY: Jemena’s Eastern Gas Pipeline (EGP). Moreover, Kembla’s target customer base, but the prospect
The pipeline is major Jemena also intends to upgrade the EGP’s capac- of other supply options on the horizon could
trunk pipeline that ity while installing new equipment to allow it to tempt buyers – correctly or not – to hold out for
will also open up the pump gas to Victoria. a better offer.
Victorian market. AIE, which is wholly owned by Squadron
Energy, aims to begin delivering imported gas In the pipeline
WHAT NEXT: supplies to NSW consumers before the end As part of its agreement with AIE, Jemena
The project faces rising of 2022. If and when the terminal does come has pledged to invest more than AUD70mn
competition from a online, and Jemena’s pipeline upgrades are in ($51.65mn) in first building a 12-km under-
number of other supply place, the project will be able not just to supply ground pipeline to connect the LNG ter-
projects. NSW but also Victoria, whose gas supply crunch minal to the EGP and then modifying the
is projected to arrive earlier than in other East trunk line to be able to pump gas south of
Coast gas markets. the NSW border.
While the Port Kembla project promises to The EGP is currently capable of delivering
help resolve the East Coast’s looming gas supply 360 TJ (9.38mn cubic metres) per day of gas
shortfall, which the Australian Energy Mar- from Longford in Victoria’s Gippsland region to
ket Operator (AEMO) has warned could first Sydney and Canberra.

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