Two companies are advancing initiatives to establish a connection between the Beetaloo Basin and consumers in the eastern regions of Australia.
This week marked the first instance of gas being extracted from the Beetaloo resource, with the Northern Territory (NT) government asserting that it has the potential to offer “more gas than this country will ever know what to do with.”
A director from one of the companies anticipates that initially, Beetaloo gas will cater to the domestic market before shifting focus to export opportunities as the pipeline infrastructure develops.
Both companies are making strides in constructing new gas pipelines, which they assert will greatly enhance the supply of gas from the Beetaloo Basin in the Northern Territory to the eastern coastline of Australia.
Earlier this week, the first gas from the Beetaloo Basin entered the NT power grid during a ceremony attended by Chief Minister Lia Finocchiaro, who emphasized the vast potential of this resource.
Jemena, an infrastructure firm, has announced plans to create a 400-kilometer pipeline connecting the Beetaloo Basin to the Northern Gas Pipeline (NGP), which links Tennant Creek to Mount Isa, serving as the sole conduit for NT gas resources to the eastern states.
In parallel, environmental evaluations have commenced on a proposal by another company, APA Group, to construct a new 1,500-kilometer pipeline that would run directly from Beetaloo, situated approximately 500 kilometers southeast of Darwin, to southwest Queensland.
David Gillespie, managing director of Jemena, expressed optimism that if the proposed infrastructure is established and the general network is enhanced, the full potential of the Beetaloo resource could be unlocked.
“I believe there is a significant opportunity for the NT and the Beetaloo to not face infrastructure limitations,” he stated.
Gillespie noted that the resource is expected to be substantial, and the infrastructure being developed to support it typically has a lifespan of at least 20 to 30 years.
While he could not provide an exact cost for the new pipeline, he mentioned that the 622-kilometer NGP had a construction cost of $700 million before its opening in 2018.
Jemena plans to submit a pipeline permit application to the NT government by the end of this year.
Adam Watson, CEO of APA, described his company’s pipeline proposal as “critical, nation-building infrastructure.” He asserted that the North to East Australia Pipeline (NEAP) could significantly transform Australia’s energy landscape.
“Unlocking the Beetaloo Basin will bolster energy security and facilitate the transition for households, businesses, and essential manufacturing sectors,” Watson remarked.
The NEAP project will require environmental approvals from the governments of Queensland, NT, and the federal level.
Gillespie indicated that both Jemena and APA Group’s initiatives could prove to be financially sound, and Jemena does not intend to seek public funding.
“We are more aligned than competitive in our efforts… our main focus is on how we can bring gas to market and commercialize this resource as production scales up,” he added.
He also mentioned that APA’s plans may ultimately lead to long-term opportunities for the Beetaloo Basin to become a significant exporter.
According to Gillespie, the initial gas from Beetaloo is expected to meet domestic demands, with a shift towards exports occurring as infrastructure expands.
“Initially, the focus will likely be on supporting domestic needs,” he noted. “As production scales up, the infrastructure developed will predominantly serve export markets, whether directed east to Queensland or north to Middle Arm in the Territory, will depend on market demands.”
