The Katnook Gas Processing Facility in south-east South Australia is set to provide natural gas to the region again following a major redevelopment, assisted through a $6 million grant from the Federal Government’s Gas Acceleration Program.

The new gas plant which is operated by Beach Energy will process raw natural gas from the nearby Haselgrove-3 well and transport it via pipelines to customers like Kimberly-Clark in Millicent, and others in Mount Gambier and the surrounding region.

Minister for Resources, Water and Northern Australia, Keith Pitt, said the redeveloped Katnook gas plant will help energy security in South Australia’s south-east.

“The redevelopment of the Katnook Gas Processing Facility is a great regional example of the outcomes provided through the Commonwealth’s Gas Acceleration Program,” Mr Pitt said.

“SE South Australia is an important regional manufacturing area which needs reliable and affordable supplies of natural gas to maintain and grow its local industries.”

The redevelopment project was also supported by the South Australian Government’s PACE Gas Scheme, contributing $6 million to support the original gas discovery in the Haselgrove-3 well.

“Having locally produced natural gas for SA’s south-east will become more important as the region grows and builds its manufacturing sector. It also means more local jobs,” Mr Pitt said.

The $26 million Federal Government’s Gas Acceleration Program is speeding up the responsible development of natural gas by supporting five new projects to secure more than 20PJ of new gas supplies for domestic customers.

The Gas Acceleration Program and other initiatives under the Federal Government, including the Australian Domestic Gas Security Mechanism and the Heads of Agreement with LNG exporters, have contributed to gas price falls of between 45 per cent and 65 per cent across the east coast gas spot markets since the highs of February 2017. East coast spot gas prices are now at between $4-$6 a gigajoule – down from $8.50-$11 a gigajoule in March 2019.

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