KEY POINTS
- Jemena plans a roughly 400km pipeline linking Beetaloo gas to eastern Australia.
- Beetaloo has begun commercial production, with Tamboran supplying 40 TJ/day to Darwin.
- The project could help ease east coast gas shortages and support Australia’s domestic gas obligations.
Pipeline operator Jemena is planning a new 400-kilometre gas pipeline to connect Australia’s Beetaloo Basin with the country’s gas-hungry east coast, in a move that could significantly expand the market for gas produced in the Northern Territory.
The proposed infrastructure is expected to provide a faster route for Beetaloo gas to reach major domestic consumers, while also helping address concerns over gas supply shortages on Australia’s east coast
Jemena Chief Executive David Gillespie said on Thursday that the company would seek regulatory approval to construct a pipeline of approximately 400 kilometres linking the Beetaloo Basin to Jemena’s existing Northern Gas Pipeline.
Gillespie said the project would provide the “shortest and fastest pathway” for larger volumes of Beetaloo gas to reach the east coast market.
The proposed connection would build on existing infrastructure rather than requiring producers to develop an entirely new transportation network to access consumers in eastern Australia.
Northern Gas Pipeline capacity
Jemena’s Northern Gas Pipeline currently has the capacity to transport about 90 terajoules (TJ) of natural gas per day to eastern Australia.
According to Gillespie, that capacity could be increased to approximately 130 TJ per day through the installation of additional compression equipment.
The expansion would give producers in the Beetaloo Basin greater access to markets beyond the Northern Territory, where domestic gas demand remains relatively limited.
The pipeline proposal comes as the Beetaloo Basin takes its first steps towards commercial gas production.
Tamboran Resources this week began supplying about 40 TJ of Beetaloo gas per day to Darwin, marking the basin’s first commercial gas production.
Although current production remains relatively small, developers have much larger ambitions for the region. Producers envisage the Beetaloo eventually supporting developments on a scale comparable with liquefied natural gas (LNG) projects, as well as providing gas-fired electricity for major industrial users and data centres.
Australia’s east coast has faced persistent concerns over future gas supplies, despite the region hosting three major LNG export facilities.
The supply challenge has led successive Australian governments to intervene in the gas market since 2017, seeking to ensure that domestic consumers have adequate access to gas while the country continues to export LNG.
In May, the federal Labor government announced plans requiring future LNG projects to reserve 20% of their gas production for domestic consumption.
The policy is intended to strengthen domestic supply and reduce the risk that exports could contribute to shortages or higher prices in the local market.
