Explorer Galilee Energy Limited and pipeline company Jemena have come together with a plan to fast-track the delivery of a large new source of gas from Galilee Energy’s Glenaras Gas Project in the Galilee Basin in central Queensland to the east coast domestic market.
The agreement accelates Jemena’s plans to build a new pipeline delivering gas produced by Galilee Energy to the east coast and means Jemena will begin engaging with local communities, conducting field surveys and completing pipeline design concept works. In parallel, Galilee Energy will progress their appraisal activities at the Glenaras Gas Project to certify a proven gas resource large enough to underwrite the pipeline construction.
Galilee Energy managing director, Peter Lansom, said the company 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,” Mr Lansom said.
Jemena executive general manager Corporate Development, Antoon Boey, said that to overcome the gas supply concerns currently gripping the east coast, large new sources of gas need to be produced and delivered to the market as quickly as possible.
He said that “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.”
This project is another key step in Jemena’s plans to expand and extend its Northern Gas Pipeline, via the Galilee Basin, to the largest gas markets on the east coast.
Construction began in July on the Northern Gas Pipeline, a 622km pipeline from Tennant Creek in the Northern Territory to Mount Isa in Queensland. Construction is progressing on schedule and is creating around 600 local jobs. First gas on the pipeline is expected to flow in late 2018.
“Delivering new sources of gas from projects such as the Glenaras Gas Project into the east coast gas market is the simplest way to solve the east coast gas crisis,” said Mr Lansom.