Reported to cost around A$5bn ($324m), the new gas pipeline would tap into the abundantly available gas sources in Western Australia and deliver them to the east coast gas market. The pipeline’s objective will be to help the government address the continuously increasing energy costs in the rest of Australia.
The government stated that ACIL Allen will handle the market and analysis component of the study. GHD, on the other hand, will be involved in the study of the pipeline engineering and pipeline route assessment component.
The Australian government, in a statement said: “The Government is powering forward with a plan that will deliver an affordable, reliable and responsible energy system which will also help meet our international obligations.
“Improving the transparency, competitiveness and long term security of Australia's east coast gas market is a priority for the Government as gas is a crucial component of the current and future energy mix to ensure we keep the lights on.”
Both ACIL Allen and GHD have deep and wide ranging experience across gas markets and infrastructure, stated the Australian government. Further, they had shown the ability to provide analysis to detail future infrastructure decisions through their bid.
While ACIL Allen is into energy policy, market trends and project economics, GHD offers detailed technical advice in architecture, engineering, and environmental modelling.
Their pre-feasibility report of the pipeline project is expected to be released in March 2018.
APPEA, which calls itself as the voice of Australia’s oil and gas industry, has welcomed the government’s decision to initiate the West-East Gas Pipeline project. However, it has cautioned that local gas in reality will always be cheaper.
APPEA chief executive Dr Malcolm Roberts: “Provided the business case stacks up, APPEA welcomes more interconnection and further steps towards a larger, more integrated national market.
“But is must be acknowledged that west coast gas is likely to be an expensive solution to east coast supply concerns.
