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Central lures partners in quest to get Amadeus gas to east coast


Gas producer Central Petroleum has signed up with Australian Gas Infrastructure Group and Macquarie Mareenie to investigate a new pipeline to deliver gas to the east coast markets.

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A financial investment decision on the 950km pipeline would be made next year and built by AGIG. The pipeline would help reduce the impact of a predicted gas shortage and potentially help lower the cost of domestic gas.

It would deliver gas from Central’s Amadeus field in the Northern Territory to the hub at Moomba from where it would be delivered to the east coast.

The plan comes as the Queensland gas sector has been hit hard by the dramatic downturn in demand and prices. The Australian Competition and Consumer Commission has also raised concerns about how export gas through the LNG sector was being delivered at a lower cost than domestic gas.

Central’s chief executive Leon Devaney said the proposed pipeline would reduce the transport distance from 2200km to 950km into Moomba.

“This is an extremely exciting opportunity to help increase the supply of gas from central and northern Australia to the south-east gas markets, mitigating gas shortages forecast from 2024,” Mr Devaney said.

“A new, more efficient route to domestic markets will also increase the viability of broader gas exploration and production within onshore NT gas reserves, where there is enormous untapped potential.

“The Amadeus to Moomba gas pipeline can be a stimulus for significant capital investment, ultimately generating jobs and benefits to the NT economy through gas production royalties.

“There’s currently an active national conversation about domestic gas supply, with many alternative proposals to supply more gas to the east coast.

“We strongly believe the AMGP proposal is by far the most practical and realistic option to address supply concerns from 2024, as substantial investigation has already been undertaken, including Front End Engineering Design.

It could also provide efficient and highly responsive gas storage and supply to complement growing, but intermittent, renewable energy generation.”

“What makes AMGP stand out above other potential east coast supply proposals, is the pipeline efficiently connects significant known conventional gas reserves from proven producing fields to established markets within the short timeframes required by domestic customers.

AGIG’s chief executive, Ben Wilson said “We are delighted to partner with Central Petroleum and Macquarie Mereenie by signing an MOU for the development of this significant new pipeline. We are focused on delivering for our customers, and also benefitting the gas markets in the NT and in Eastern Australia”.

Work is progressing to achieve FID in 2021, with construction to follow in 2022 and the first supplies of gas forecast be delivered via AMGP to Moomba by 2024.

Devaney added, “We’re currently working on increasing our production potential and further exploration to have further gas supplies ready to send to east coast customers through the AMGP, as we work with AGIG and Macquarie on FID milestones.”


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