PERTH (miningweekly.com) – Gas infrastructure developer Australian Gas Infrastructure Group (AGIG) is mulling a A$200-million investment to develop the Golden Beach gas project, offshore Victoria.
The company on Thursday announced that it had entered into a non-binding transaction process deed with unlisted GB Energy, which sets out the process for negotiating and executing documentation that would see AGIG fund, build and operate the midstream infrastructure for the Golden Beach gas project.
The agreement would cover all plant, property, equipment and activities required for the transmission and processing of gas to and from the field, at an estimated development cost of A$200-million.
The two companies are also working towards AGIG’s involvement in the A$145-million development of the upstream infrastructure at Golden Beach, covering plant, property, equipment and activities related to drilling and producing gas from the Golden Beach gasfield.
AGIG said that gas from the field could be delivered as early as 2022 to the Longford gas hub and its associated strategic pipeline infrastructure, some 20 km from East Gippsland.
“AGIG is proud to partner with GB Energy on this project. Our planned involvement in this key Victorian energy asset reflects AGIG’s focus on delivering world-class infrastructure across Australia,” said AGIG CEO Ben Wilson.
“AGIG’s experience in delivering Western Australia its largest gas storage facility will be very helpful for the project. Golden Beach’s stored gas will help guarantee future gas supply to customers to meet the domestic market.”
GB Energy CEO Tim Baldwin said that the Golden Beach project would provide Victoria with new domestic gas supply in the short term.
“The overall investment in critical energy storage infrastructure will then provide a range of ongoing benefits to an evolving East Coast market.”