Central signs gas sales contract for NT-to-Queensland system

Dec. 7, 2018
Central Petroleum Ltd., Brisbane, is to sell gas to pipeline operator Jemena for commissioning of the Northern Gas Pipeline (NGP) connecting the Northern Territory pipeline grid to the Queensland system via Mount Isa. It is now anticipated that the pipeline will be ready to begin commercial flow between Dec. 29, 2018, and Jan. 10, 2019.

Central Petroleum Ltd., Brisbane, is to sell gas to pipeline operator Jemena for commissioning of the Northern Gas Pipeline (NGP) connecting the Northern Territory pipeline grid to the Queensland system via Mount Isa.

It is now anticipated that the pipeline will be ready to begin commercial flow between Dec. 29, 2018, and Jan. 10, 2019.

Central said its facility upgrade at Mereenie field and the Palm Valley field Restart Project in the Amadeus basin of central Australia have now been brought into production in anticipation of the NGP opening. All key processing and production equipment have been installed and are running except for a field boost compressor at Mereenie. This has been installed and is currently undergoing run testing.

Both projects were fast-tracked to maximize sales through the NGP.

The Mereenie upgrade was delivered in 8 months after ordering long-lead items, some 3 months ahead of the initial schedule.

Mereenie gas field will be able to deliver 44 terajoules/day of gas on a firm basis along with additional capacity on a nonfirm basis

Palm Valley facilities now have a sales gas capacity of 15 terajoules/day. Three of the existing Palm Valley wells have been brought back on line and a fourth is expected to be in production within weeks. A new well, PV13, is scheduled for tie-in early in the New Year.

Overall, Palm Valley will be capable of producing at triple the average gas flow rate prior to shut-in.

Central said that delivery of these two projects represents a culmination of the company’s gas acceleration program aimed at tripling its gas sales.