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Investment continues in Australia's gas infrastructure

29 February 2016

Today I congratulate Jemena on the completion of its $150 million expansion of the Eastern Gas Pipeline (EGP).

The expansion increases the pipeline’s capacity by around 20 per cent, enabling it to carry an additional 22 petajoules per year, enough to supply around one million homes with gas.

The project is underwritten by a 15-year gas transportation agreement between Jemena and AGL Energy and has been facilitated by adding two new midline compressor stations, at Michelago in southern New South Wales and Orbost in East Gippsland, and additional delivery facilities in Wilton, NSW, which will help secure reliable transportation of gas through NSW and the ACT.

Supplying more than half the gas consumed in NSW, the 797 kilometre EGP was commissioned in 2000 to transport gas from the Gippsland Basin to major centres in Sydney, Canberra and Wollongong, and regional centres like Bairnsdale, Cooma, Nowra and Bomaderry.

Australia’s eastern gas market is undergoing rapid and widespread transformation, particularly following the commencement of liquefied natural gas exports from Queensland heralding a new era for the gas market.

Demand for gas in the eastern market will almost double from 965 petajoules in 2015 to more than 1,900 petajoules by 2018. Continued investment in gas exploration, production, storage and transportation infrastructure, such as the EGP, is essential to ensure the reliable delivery of this vital energy supply.

The EGP expansion complements Jemena’s $800 million commitment to the Northern Gas Pipeline which will link the gas reserves of the Northern Territory to the east coast market. The Australian Government is leading work with state and territory governments through the Council of Australian Governments (COAG) Energy Council to deliver a cooperative energy market reform agenda aimed at easing energy price pressures for consumers while ensuring a reliable supply.

Media contact: Mr Frydenberg's office 02 6277 7180
Department media: media@industry.gov.au