The Glenaras project of the Brisbane-based oil and gas exploration company is located in the western portion of the Galilee Basin in central Queensland. It is expected to become a large new source of coal seam gas in the near future.
Australian energy infrastructure firm Jemena says that it will initiate talks with local communities, carry out field surveys, and complete pipeline design concept works.
Jemena corporate development executive general manager Antoon Boey said that large new sources of gas are required to be produced and delivered to the market as quickly as possible to overcome the prevailing gas supply shortage of the east coast.
Boey added: “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 with the objective of first gas to market in 2022.”
Galilee Energy, on its part, will continue with its appraisal activities at the Glenaras Gas Project to certify a proven gas resource, which is considered to be adequate to have a dedicated pipeline for its supply.
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 programme 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.”
The new pipeline project marks another major step in Jemena’s plans to expand and extend its A$800m ($603m) worth Northern Gas Pipeline (NGP) project as per Boey.
NGP, which will span 622km, will pass through the Galilee Basin, to the gas markets on the Australian east coast. The first gas on the NGP pipeline is anticipated to flow in late 2018.
