PERTH (miningweekly.com) – The resources industry has welcomed the completion of the 50-km Reedy Creek Wallumbilla pipeline, which connects Australia Pacific Liquefied Natural Gas’ (APLNG’s) Reedy Creek processing facility with the Wallumbilla gas supply hub in Queensland’s Surat basin.
The Australian Petroleum Production & Exploration Association (Appea) on Tuesday said that the new pipeline will provide further flexibility and gas supply opportunities to the domestic gas market.
Appea Queensland director Rhys Turner said that the 50-km bi-directional pipeline will enable foundation customer APLNG, who have signed a 20-year gas transportation agreement, to quickly move gas into the east coast market, via the APA Group operated pipeline.
“Improved pipeline infrastructure is key to getting natural gas to where it is needed, be it into the east coast network or to export markets,” Turner said.
The pipeline will pump up to 300 TJ of gas a day through the east coast network, and along with the associated connection and compression facilities at Wallumbilla, the project would cost A$80-million to construct.
Queensland Resources Council CEO Ian Macfarlane applauded the industry for partnering to deliver an important piece of gas infrastructure, and assisting in putting downward pressure on energy prices by increasing demand into the domestic market.
Queensland Premier Annastacia Palaszczuk said at the opening of the pipeline that while other states refused to develop their gas resource, the Queensland government was getting on with the job of making energy more affordable for both communities and industry across eastern Australia.
“APA is Australia’s largest natural gas infrastructure business, operating approximately A$20-billion of assets. Given Queensland is Australia’s energy powerhouse, it comes as no surprise that APA invests more in Queensland than anywhere else in Australia,” the Premier said.