The Santos GLNG site on Curtis Island in October 2014.
The Santos GLNG site on Curtis Island in October 2014. Santos

Company to build 200km pipeline to fix Gladstone gas shortage

AN ENERGY company has reinvigorated its plans to boost gas supply by connecting the northern and southern gas markets.

At Blue Energy's annual general meeting the company outlined its vision for the future, and what it believes is the "solution" for Australasia to get more gas to the market.

Chief executive officer John Phillips said the company was gaining interest for the construction of a 200km pipeline to connect the Bowen Basin to the southern gas market, including Gladstone.

Mr Phillips said his company saw this as a solution to the need for Australia to produce more gas.

"We've identified a substantial gas province in the Bowen Basin Moranbah and we've had production into the Townsville market for 10 years now but there is no connection to the southern market," Mr Phillips said.

"The size of the southern market, including Gladstone, is of a magnitude that would be attractive to gas reserves in the Bowen Basin."

Mr Phillips said the 200km pipeline could help the three LNG sites at Curtis Island secure more gas.

"With the advent of LNG in Gladstone, that puts pressure on the east coast gas supply and we see the Bowen Basin as the obvious answer to help that gas supply," he said.

The link would connect the northern market with the Gladstone port and give the company's fields access to domestic markets in New South Wales and Victoria.

The proposed pipeline would run from Moranbah in the north, through Emerald, to an existing pipeline at Denison Trough North.

"There's a growing gas shortage on the east coast from 2018 onwards, which has to be supplied from somewhere," Mr Phillips said.

"All we need is that 200km link to Gladstone."

"The development of northern Australia is lacking and this is critical infrastructure," he said.

But while their aspirations were one of the main projects outlined at the AGM, Mr Phillips said it was still early days.

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