NT shale gas could solve Australia’s energy crisis

Energy company Jemena says expanding its $800 million Northern Gas Pipeline (NGP) to south-east Queensland could help solve the looming east coast shortage by putting an extra 600 terajoules of gas each day into the eastern gas market.

Jemena is undertaking feasibility studies on expanding the yet-to-be-constructed NGP, according to a report in the Australian Financial Review (AFR).

The pipeline is due to deliver gas from Tennant Creek, NT, to Mount Isa, North Queensland. An expansion would involve an 1100km link from Mount Isa to southern Queensland.

Jemena says the NGP means can be scaled it up in the event of more demand for gas transportation.

The first stage of the pipeline is expected to carry 100 terajoules a day. However, the capacity can be boosted to 700TJ/day if Jemena decides to extend the pipeline to south-east Queensland.

But Jemena’s executive general manager of corporate development Antoon Boey told the AFR that the NT’s moratorium on hydraulic fracturing was creating doubt over further development.

He said the moratorium has cast doubt on how much gas could be produced in the NT and had hindered development of gas contracts.

“The fracking moratorium poses a bit of an uncertain part of the whole equation,” Mr Boey said.

“At the moment there is no upstream development taking place to the extent that gas needs to be fracked.

“We hope that longer term the government does put in place does put appropriate measures to regulate to safeguard the interest of the environment and there is sufficient gas available for the extension.”

Read more: http://www.afr.com/…/jemena-says-nt-pipeline-extension-coul…