http://oilandgasreview.com.au/word/new-pipeline-will-deliver-gas-to-queensland-and-nsw-customers/
New pipeline will deliver gas to Queensland and NSW customers
GAS customers in Queensland and NSW will have a new stream of supply after Armour Energy and APA Group agreed to jointly construct a pipeline from Armour’s northern Australian gas projects.
By November 2015, Armour’s Northern Queensland project area is expected to have between 7.5 trillion cubic feet and 9tcf of gas resources from the South Nicholson and Isa Super basins and part of the Carpentaria Basin. The company also reportedly aims to have more than 4tcf of gas resources in the Batten Trough of the Macarthur Basin and part of the Georgina Basin in the Northern Territory.
Once complete, the APA-owned and operated 350km pipeline would transport up to 330 petajoules of gas per annum from Armour’s project area near Burketown, northeast Queensland.
The first and second stages of the Northern Area Gas Scheme (NORGAS) will require the construction of the pipeline to transport up to 130PJ per year to Mount Isa. The first pipeline will target the Mount Isa market with the balance to be transported through upgraded facilities to Ballera, then southern markets and Wallumbilla in the state’s south.
A new pipeline or upgrade of the existing facilities will make up stage three of the project, allowing 200PJ per annum of gas from Mount Isa to Gladstone, while stage four would see Queensland and the Northern
Territory connected through APA’s existing infrastructure, potentially expanding and building new pipelines.
An independent report predicted Armour had more than 40tcf of resources in its granted project areas – 27 per cent of the total area that the company has under application.
Armour has more than 100 conventional and unconventional targets across Queensland and the Northern Territory.
“Successful development of Armour’s acreage and expansion of APA’s network will see the NORGAS project make a valuable and strategically important contribution to supply of gas both for south-eastern Australian domestic gas markets and existing export LNG markets in Northern Territory and Queensland,” a company statement said.
Armour is drilling the Egilabria-2 well near Burketown and is expected to drill three wells in the Northern Territory.
The company’s north Queensland project area was anticipated to deliver first gas into the NORGAS pipeline in February 2016.
