New Oz Pipeline Gives APLNG Better Access to Domestic Market

A new gas pipeline connecting Australia Pacific LNG’s (APLNG) Reedy Creek facilities to the Wallumbilla Gas Supply Hub has been completed and will give the project direct access to Australia’s east coast market, APLNG said June 26.

“The 50 kilometre bi-directional pipeline links APLNG’s Reedy Creek site with the Wallumbilla Gas Supply Hub, securing firm, direct access to the domestic gas market,” APLNG said.

The link, known as the Reedy Creek Wallumbilla pipeline, was constructed and is to be operated by Australian gas infrastructure company APA Group. APLNG is a foundation customer for the pipeline, having signed a 20-year Gas Transportation Agreement with APA Group, which underpinned the construction.

“This new pipeline gives APLNG efficient, flexible access to Australia’s dynamic east coast gas market via Wallumbilla,” APLNG CEO Warwick King said.

The Queensland Resources Council (QRC) said it welcomes the news and that the pipeline will pump up to 300 terajoules of gas per day through the east coast network.

“I applaud industry for partnering together to deliver another important piece of gas infrastructure and helping to put downward pressure on energy prices by increasing demand into the domestic market,” QRC chief executive Ian Macfarlane said.

As part of the project, APA also constructed the associated connection and compression facilities at Wallumbilla with a total construction cost of A$80mn ($59.32mn), the QRC said.

APLNG is one of the largest producers of gas on the east coast of Australia, and says that this year it will supply around 30% of the region’s gas market demand.