Jemena to build Port Kembla interconnect pipeline

Australian Industrial Energy Pty Ltd. (AIE) has signed a memorandum of understanding with energy infrastructure group Jemena to connect AIE’s proposed $250 million (Aus.) Port Kembla LNG reception terminal south of Sydney with the main Eastern Gas Pipeline (EGP) running up the coast into New South Wales and the Australian Capital Territory from Victoria.

Jemena estimates a capital cost of $70 million (Aus.) to construct a 12 km underground pipeline between the two points. The company also plans to modify the EGP so that it can deliver in excess of 200 terajoules/day of gas from New South Wales into the Victorian market as well as supplying 450 terajoules/day of gas to New South Wales. This represents a 25% increase in the EGP’s current capacity.

The new interconnect pipeline will provide capacity to deliver 522 terajoules of gas from the regasification terminal.

The Jemena MoU comes on the heels of AIE’s announcement that it had signed an agreement lease for up to 25 years with NSW Ports, thus securing the tenure to enable it to begin construction of the Port Kembla reception terminal (OGJ Online, Nov. 13, 2020).

The project is on track to come on stream by end-2022.