Tenements and transmission infrastructure
This section contains further information on:
Geology
Power generation
PEL 238
Narrabri Coal Seam Gas (CSG) Utilisation Project
PEL 433 & PEL 434
PEL 6, PEL 427 and PEL 428
Location of Tenements and transmission infrastructure
Source: ESG
Transmission infrastructure
Click here to enlarge map
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. ESG has entered into a Heads of Agreement ('HoA') with the APA Group (Australia's largest gas transmission pipeline owner and operator) to facilitate development of the necessary infrastructure. It is invisaged this will take place in a staged manner.
Stage 1 development
Market access could be obtained by constructing a gas pipeline that connects to the existing Central Ranges Pipeline, with gas then backhauled to the Moomba Sydney Pipeline at Marsden. Examples of possible connection pipelines are depicted. The APA Group has commenced front end engineering and approvals work for development of the pipeline link.
Indicative connections to existing pipeline infrastructure
Source: ESG
The 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
Stage 2 development
Expanded access to existing, major load centres could be achieved by means of new-build pipeline infrastructure to Newcastle via Bayswater, as depicted below. 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.
