East coast gas in the pipeline for Jemena THE AUSTRALIAN 12:00AM...

East coast gas in the pipeline for Jemena

• THE AUSTRALIAN
• 12:00AM JUNE 13, 2016
• SAVE
• PRINT
• Matt Chambers
  
  Resources reporter
  Melbourne
  

Chinese-controlled infrastructure company Jemena says an $800 million pipeline it is building to connect the Northern Territory gas market with the east coast is part of a much bigger plan, with Gladstone’s three LNG plants set to drive more demand than many were expecting and likely to struggle to source reasonably priced gas.
The potential extra demand from Gladstone’s Curtis Island, where $70 billion of LNG construction is tripling east coast demand, was illustrated by Origin Energy, which last week told investors there was the opportunity for east coast LNG plants to run at 10 per cent above nameplate capacity.
That 10 per cent is the equivalent of more than 330 terajoules of gas a day, or more than triple the initial capacity of Jemena’s planned Northern Gas Pipeline from Tenant Creek to Mt Isa.
“It is very easy to underestimate the amount of gas that’s needed on the east coast, taking LNG and domestic gas demand together,” Jemena business development manager Antoon Boey told The Australian on the sidelines of last week’s Australian Petroleum Production and Exploration Association meeting in Brisbane.
“The LNG plants are running at more than 100 per cent of design capacity already, just a few months after commissioning.''

http://www.theaustralian.com.au/bus...a/news-story/75395476bd4e04a60d4f0ca237c7cbcc