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Eastern Gas Pipeline Reversal Could Ease Victorian Supply Crunch

Mar 26, 2024

Up to 300 TJ/d of gas could be sent south from New South Wales into Victoria as part of plans from leading energy infrastructure company, Jemena, to reverse the 797km Eastern Gas Pipeline (EGP).

Commissioned in the year 2000, the EGP has traditionally brought gas from Bass Strait to the New South Wales and Sydney market, and has at times supplied over 70 per cent of gas across New South Wales.

Initially, the reversal project could see the EGP operating bi-directionally and able to deliver 200TJ/d south in time for Winter 2026 from Port Kembla Energy Terminal (PKET), which is owned by Squadron Energy. At over 90 per cent complete PKET is Australia’s most advanced LNG import terminal. Subject to market demand southern flows could be increased to 300TJ/d.

Announcing the reversal project at the Australian Domestic Gas Outlook Conference, Jemena’s Executive General Manager of Gas Markets, Cameron Dorse, said the project was the fastest and most efficient way to bring additional gas south to Victoria before forecast gas shortages materialise.

“As recently as last week the Australian Energy Market Operator signalled the urgent need for additional gas supplies to the major demand centres in Victoria and NSW,” said Mr Dorse.

“We know gas plays a crucial firming role to renewable generation, particularly in the country’s south-east which is heavily dependent on gas to supply peaking energy as well as for use in domestic and commercial settings. The reversal project and Port Kembla Energy Terminal is the only realistic and viable option available to the market to make additional gas available quickly.”

Mr Dorse said Jemena was well-advanced in planning for the first stage of the reversal project.

The project comes after Jemena completed works to connect PKET to the Eastern Gas Pipeline last year. Those works saw the company construct a 12km pipeline lateral from Port Kembla to Kembla Grange in the New South Wales Illawarra region. The project also included an upgrade to the Kembla Grange facility to include a metering station.