The pipeline currently runs from Tennant Creek in the Northern Territory to Mount Isa in Queensland
Jemena has announced a partnership with Tamboran Resources to develop the Beetaloo / McArthur basin in Australia in a move to speed up its plans to boost the capacity of the Northern Gas Pipeline (NGP).
The Australian energy infrastructure company has signed a binding Memorandum of Understanding (MOU) with Tamboran Resources, which holds an acreage in the Beetaloo basin in Northern Territory (NT).
As per the MOU, Jemena will extend the 622km long Northern Gas Pipeline from the Beetaloo Basin to the Wallumbilla Gas Hub in Queensland.
The expansion of the NGP capacity will involve an investment of over AUD5bn ($3.65bn).
The pipeline, which currently runs from Tennant Creek in the Northern Territory to Mount Isa in Queensland, began commercial operations in January 2019.
Jemena managing director Frank Tudor said: “This is an important step towards delivering on the Commonwealth Government’s plans for the Beetaloo as part of a gas-led recovery from the COVID-19 Pandemic.
“Through this partnership we hope to expedite the pace at which we can bring much needed additional gas to market, while creating around 4,000 jobs – many in regional Australia.”
Tamboran Resources will be responsible for undertaking the upstream activities across the Beetaloo Basin, as per the MOU. The company has a 25% stake in an exploration project in the basin with Santos (75% stake).
Tamboran managing director and CEO Joel Riddle said: “The announcement of our partnership with Jemena represents a key building block in our efforts to bring new supplies of natural gas to energy starved eastern Australia by 2023-24.
“Successful development of the Beetaloo in coordination with Jemena’s pipeline capacity expansion represents a significant opportunity to greatly enhance gas supply in Australia and we at Tamboran are excited to be a key participant in achieving this goal.”
The partnership is expected to help Jemena to boost the capacity of the Northern Gas Pipeline from nearly 90 terra joules (TJs) of gas per day to 1,000TJs through a mix of compression and looping.
The expanded pipeline will be connected to Jemena’s proposed 585km long Galilee Gas Pipeline.
The proposed gas pipeline will deliver gas sourced from Galilee Energy’s Glenaras Gas Project in the Galilee Basin in Queensland to the Wallumbilla Gas Hub.