West to East Coast gas pipeline deal signed

Western Gas and APA Group have signed a Memorandum of Understanding (MOU) to develop and market a study to supply Equus gas to Western Australia and the East Coast via a transcontinental pipeline.

The scope of the study comprises a detailed assessment of development, commercial, marketing and regulatory aspects of the project, which will form the basis of an integrated bankable feasibility study.

The study is a key step in delivering a new and independent gas supply for Western Australia and East Coast gas customers.

The Australian-owned upstream and pipeline projects would support long-term domestic energy needs, create new jobs, drive significant economic and social benefits, and increase national energy security.

The Western Power owned and operated Equus Gas Project is a development-ready 2Tcf gas and 42MMbbl condensate (2C) project located offshore about 200km north-west of Onslow in Western Australia.

The independently certified low CO2 Equus resource is sufficient to supply 350TJ/d of gas for more than 15 years. 

This gas supply is equivalent to 35 per cent of WA gas demand, 75 per cent of New South Wales (NSW) gas demand, or about 35 per cent of the combined gas demand of NSW and Victoria.

Western Gas plans to develop the Equus fields via a 210km offshore pipeline to the Ashburton North Strategic Industrial Area (ANSIA). 

Establishment of this offshore pipeline has the potential to enable development of other stranded gas resources, creating opportunities for additional gas supply into domestic markets and new value-adding gas-related developments.

Gas supply to the East Coast would be via an onshore transcontinental pipeline.

Equus provides the large-scale, dedicated and proven gas resource necessary to support the development of the transcontinental pipeline and delivery of competitively priced gas to customers on both the West and East Coast markets. 

Andrew Leibovitch, Executive Director, said, “We are delighted to be working with APA Group to advance an Australian resource for supply to Australian markets at an affordable price.

“This collaboration brings together our independently-owned proven gas resource with APA’s long-standing expertise in pipeline construction and operation, and its strong relationships with domestic customers and retailers.

“Expectations are that gas supply will tighten in East and West Coast markets from the mid-2020s in the absence of the development of new gas fields. 

“Equus has the opportunity to meet those market needs, as well as create new gas supply opportunities independent of LNG focused developments.”

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