- Jemena appoints Monadelphous (ASX:MND) to complete upgrade works on its Eastern Gas Pipeline, a crucial next step in enabling the pipeline to operate bi-directionally – servicing both Victoria and New South Wales.
- The appointment sees Jemena progress stage two of five potential stages to bring up to 200TJ/d of new gas to Victoria by winter 2026. The full program of works could see up to 522TJ/d of new gas delivered into New South Wales and Victoria.
- Forecasts have consistently shown the risk of gas shortfalls from the second half of this decade.
Leading energy infrastructure company, Jemena, has today appointed Monadelphous (ASX:MND) as its construction partner to progress stage two of its Eastern Gas Pipeline (EGP) reversal project. The project aims to make the 797km EGP bi-directional between Kembla Grange and Longford, so that it can flexibly transport gas into the New South Wales and Victorian gas markets.
Jemena's Managing Director, David Gillespie, said the project – which will connect with Squadron Energy's Port Kembla Energy Terminal (PKET) – is the only viable option which can bring new gas to market ahead of the forecast risk to gas supply materialising in 2026.
"It's crunch time for Australia's east-coast gas market," said Mr Gillespie.
"This project is the most mature and only realistic option currently on the table to bring new supply to market.
"As investors we continue to balance a range of domestic and international factors before taking significant capital investment decisions.
"Decisions regarding subsequent works necessary to commission and operationalise the reversal will be taken progressively and regulatory certainty will continue to be a key consideration as we make these decisions."
Mr Gillespie said that stage two of Jemena's plan will see up to 200TJ/d of new gas able to be delivered to Victoria by winter 2026. Stages three through to five of the plan include further expansion and augmentations which could see this figure increase to around 320TJ/d – crucial as traditional supplies from Bass Strait decline.
At the same time, around 300TJ/d of gas can concurrently be supplied from PKET into New South Wales via the EGP; in total, the project could bring up to 522TJ/d of new gas into the south-east gas market.
The project will be managed by Jemena's construction and services business, Zinfra, including engagement and oversight of the works being performed by Monadelphous.
Monadelphous' Managing Director, Zoran Bebic said: "Monadelphous is delighted to be working again with Jemena and we look forward to partnering on the delivery of critical gas infrastructure across New South Wales and Victoria."
As part of the contract, Monadelphous will complete upgrade works at Jemena's Michelago, Mila, and Longford Compressor Stations. Project works are expected to take six (6) months allowing sufficient time for commissioning ahead of winter 2026.
