Jemena’s proposal to deliver Beetaloo Basin gas to east coast by 2026

A bold new proposal could see Beetaloo Basin gas flowing to eastern Australian markets by next year.

Pipeline builder Jemena is heading to market to develop its Northern Territory Gas Strategy, with a proposal that could see Beetaloo Basin gas to Australia’s east coast via the Northern Gas Pipeline.

The Melbourne-based company is seeking expressions of interest “to help shape future gas transport services” based around the $800m, 622km pipeline linking Tennant Creek and Mt Isa, which first produced gas in early 2019.

Jemena wants the strategy to target the quickest and cheapest way to bring gas from the Beetaloo Basin to market.

Under the strategy, Jemena estimated early stage Beetaloo gas could supply up to 10 per cent of east coast gas market demand using existing pipeline infrastructure, potentially hastening the delivery of gas to the east coast by years.

Jemena's Northern Gas Pipeline compressor station at Phillip Creek, about 50km west of Tennant Creek.

Later stages could see Jemena construct a 370km pipeline connecting the Northern Gas Pipeline with the Beetaloo Basin.

Described by Jemena as a “customer-led plan”, it’s hoped the existing infrastructure could deliver Beetaloo gas to the east coast by 2026.

Jemena said at present, 90 terajoules a day of Beetaloo Basin gas could be immediately transported via the Northern Gas Pipeline to the east coast as key Beetaloo players Tamboran Resources and Beetaloo Energy Australia begin production.

Under Jemena’s Stage Two strategy, the Northern Gas Pipeline will be augmented and expanded to increase its capacity by about 45 per cent, meaning the pipeline will be able to transport around 130 terajoules a day - about 10 per cent of east coast gas demand.

The Northern Gas Pipeline is the only Northern Territory infrastructure, directly connected to Australia’s east coast gas market via Queensland.

Jemena’s managing director David Gillespie said the company is focused on understanding the needs of the market, particularly upstream producers in the Beetaloo, to ensure the Northern Territory Gas Strategy reflects the reality on the ground.

“We’re listening to our stakeholders to understand how we can best meet their needs and make their projects a success,” he said.

Jemena's Northern Gas Pipeline was built in 2018 and commissioned in 2019.

“As a first step, we are conducting a market-led expression of interest process to engage with producers in the Northern Territory as well as gas consumers to understand future pipeline needs within the Beetaloo Basin or the Northern Territory more broadly.”

Jemena’s strategy is focused on using established infrastructure, rather than undertaking large-scale new infrastructure builds, with a potential price tag up to $6bn and a completion time in the early 2030s at the earliest.

“By gradually augmenting the capacity of the Northern Gas Pipeline, we can match transportation capacity with production volumes, making the NGP the most cost-effective way of delivering Beetaloo gas to market,” he said.

“This is a win-win for upstream gas producers and consumers as it will enable Beetaloo gas, particularly early-stage Beetaloo gas, to be delivered to market quickly and without the price tag associated with large-scale new infrastructure builds.

“This gas is crucial for large industrials and Australia’s $100bn manufacturing sector, which simply cannot wait half a decade for new pipeline builds to be completed.”

Spanning about 28,000sq m and almost as big as Belgium, the Beetaloo is estimated to contain more than 1000 times Australia’s annual domestic gas consumption.

Originally published as Jemena’s proposal to deliver Beetaloo Basin gas to east coast by 2026