- Jemena appoints Monadelphous (ASX:MND) to complete upgrade works on its Eastern Gas Pipeline, a crucial next step in enabling the pipeline to operate bi-directionally – servicing both Victoria and New South Wales.
- The appointment sees Jemena progress stage two of five potential stages to bring up to 200TJ/d of new gas to Victoria by winter 2026. The full program of works could see up to 522TJ/d of new gas delivered into New South Wales and Victoria.
- Forecasts have consistently shown the risk of gas shortfalls from the second half of this decade.
Leading energy infrastructure company, Jemena, has today appointed Monadelphous (ASX:MND) as its construction partner to progress stage two of its Eastern Gas Pipeline (EGP) reversal project. The project aims to make the 797km EGP bi-directional between Kembla Grange and Longford, so that it can flexibly transport gas into the New South Wales and Victorian gas markets.
Jemena’s Managing Director, David Gillespie, said the project – which will connect with Squadron Energy’s Port Kembla Energy Terminal (PKET) – is the only viable option which can bring new gas to market ahead of the forecast risk to gas supply materialising in 2026.
“It’s crunch time for Australia’s east-coast gas market,” said Mr Gillespie.
“This project is the most mature and only realistic option currently on the table to bring new supply to market.
“As investors we continue to balance a range of domestic and international factors before taking significant capital investment decisions.
“Decisions regarding subsequent works necessary to commission and operationalise the reversal will be taken progressively and regulatory certainty will continue to be a key consideration as we make these decisions.”
Mr Gillespie said that stage two of Jemena’s plan will see up to 200TJ/d of new gas able to be delivered to Victoria by winter 2026. Stages three through to five of the plan include further expansion and augmentations which could see this figure increase to around 320TJ/d – crucial as traditional supplies from Bass Strait decline.
At the same time, around 300TJ/d of gas can concurrently be supplied from PKET into New South Wales via the EGP; in total, the project could bring up to 522TJ/d of new gas into the south-east gas market.
The project will be managed by Jemena’s construction and services business, Zinfra, including engagement and oversight of the works being performed by Monadelphous.
Monadelphous’ Managing Director, Zoran Bebic said: “Monadelphous is delighted to be working again with Jemena and we look forward to partnering on the delivery of critical gas infrastructure across New South Wales and Victoria.”
As part of the contract, Monadelphous will complete upgrade works at Jemena’s Michelago, Mila, and Longford Compressor Stations. Project works are expected to take six (6) months allowing sufficient time for commissioning ahead of winter 2026.
---ENDS---
Note to Editor:
Overview of planned and future project stages
|
Stage |
Activity |
|
One |
Connection of Port Kembla Energy Terminal (PKET) to the Eastern Gas Pipeline via the development of a 12km lateral pipeline. Up to 522TJ/d of gas is capable of being receipted at the PKET.
Status: complete |
|
Two |
Works to make Jemena’s 797km Eastern Gas Pipeline bi-directional from PKET to Longford, so it can deliver gas receipted at PKET to both Victoria and New South Wales. As part of stage two 200TJ/d of new gas will be made available to the Victorian market, with the remaining 322TJ/d being available to New South Wales.
Status: commenced |
|
Three |
Installation of a new compressor at Kembla Grange to increase southerly flows from PKET into Victoria.
Status: not commenced |
|
Four |
Expansion works at Jemena’s Wilton Compressor Station to increase northern gas flows from PKET into New South Wales.
Status: not commenced |
|
Five |
Installation of a new compressor at Wilton to fully reverse the Eastern Gas Pipeline.
Status: not commenced |
NB: project phases may be executed in parallel.
About us:
About Jemena
Jemena is a $12.4 billion company which owns and manages some of Australia's most significant gas and electricity assets. These include:
· the Jemena Gas Network servicing 1.4 million customers around New South Wales
· the Eastern Gas Pipeline which currently delivers gas from Victoria's Gippsland basin to the ACT, Sydney and regional NSW
· the Darling Downs Pipeline Network in south-east Queensland supplying Darling Downs Power Station and APLNG’s export pipeline
· the Queensland Gas Pipeline which supplies Gladstone and Rockhampton
· Jemena's Victorian electricity network which delivers electricity to over 360,000 homes and businesses in north-west Melbourne
· the Northern Gas Pipeline delivering gas from the Northern Territory into north-west Queensland
· the Atlas Gas Pipeline and the Roma North Processing Plant.
For more information visit www.jemena.com.au
About Monadelphous
With over 50 years of experience, Monadelphous Group Limited (ASX: MND) is a leading Australian engineering group providing construction, maintenance and industrial services to the resources, energy, and infrastructure sectors. The Company has two operating divisions − Engineering Construction, providing large-scale multidisciplinary project management and construction services, and Maintenance and Industrial Services, specialising in the planning, management and execution of mechanical and electrical maintenance services, shutdowns, fixed plant maintenance services and sustaining capital works.
Monadelphous is headquartered in Perth, Western Australia, with a major office in Brisbane, Queensland, and offices, projects, facilities and workshops across Australia and in China, Mongolia, Papua New Guinea and the Philippines. Please visit www.monadelphous.com.au for further information.