Tenements and transmission infrastructure
This section contains further information on:
Geology
Power generation
PEL433 & PEL434
Other
Location of Tenements and transmission infrastructure
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Source: ESG
Transmission infrastructure
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Source: ESG
Access to transmission infrastructure
Future pipeline infrastructure developments
Development of the Narrabri CSG project will require development of new, high-pressure gas transmission pipeline infrastructure to transport the gas to markets. Two principal options are available for the development of pipeline infrastructure, as described below.
1. Staged development
Market access could be obtained by constructing a gas pipeline that connects to the existing Central Ranges or Central West Pipelines, with gas then backhauled to the Moomba Sydney Pipeline at Marsden. Examples of possible connection pipelines are depicted. The northern-most connections are shorter in length, while the direct connection to Dubbo bypasses the Central Ranges Pipeline.
Indicative connections to existing pipeline infrastructure
Source: ESG
Likely advantages of using a connection to existing pipeline infrastructure to supply gas to market include:
- the initial investment in infrastructure will be lower than if stand-alone infrastructure is developed to supply gas to, for example, Newcastle; and
- pipeline capacity could then be progressively developed or expanded as gas production and markets grow
2. Stand-alone infrastructure
Access to existing, major load centres could be achieved by means of new-build pipeline infrastructure to Newcastle via Bayswater, as depicted in Figure 4.17. Macquarie Generation’s Bayswater Power Station load is of adequate size to allow development of such a pipeline. A pipeline of this nature would have an initial cost of the order of A$300 million and, if well-utilised, would be expected to deliver tariffs of the order of A$0.50/GJ to A$0.70/GJ for transportation of gas to Newcastle.
Stand-alone pipeline infrastructure
Source: ESG
In addition to the infrastructure described above, Babcock & Brown is planning to develop its own gas transmission pipeline(s) to deliver gas to power stations it proposes to construct in northern NSW. The possibility may exist for gas to also be supplied to other markets through Babcock & Brown’s pipelines.
Babcock & Brown pipeline infrastructure
Source: ESG
In all cases ESG envisages pipeline ownership and operation will be the responsibility of other parties. With appropriately certified levels of gas reserves committed for supply under long term gas sales agreements, ESG is confident there will be strong competition between pipeline service providers seeking the contractual opportunity to provide gas transportation services.
