Galilee hopefuls continue investment
Project team formed, survey and cultural contracts imminent, and drilling next month
Wednesday 31 January 2018
Two companies collaborating to unlock vast gas tenements in the Galilee Basin say they've formed project teams and raised $5.6 million for the development of the Galilee’s massive gas reserves.
Late last year a “binding” agreement between gas explorer Galilee Energy and Chinese-controlled gas and electricity business Jemena was signed, with the intent to build a pipeline linking the East Coast gas grid with the Galilee Basin.
While it remains unknown what aspects of the agreement are binding - Galilee Energy said this week both parties are pushing ahead.
“The design work for the new Glenaras Gas Project multilateral pilot is complete and final contracting and procurement is well advanced,” they said.
"Drilling remains on target to commence in March 2018, and Jemena are progressing works on a pipeline, including establishing a project team, and preparing to award surveying, environmental and cultural heritage work.
“The pipeline development timeline is for supply to Barcaldine by 2020.”
The Galilee proposal is a crucial step in Jemena’s plans to expand and extend its Northern Gas Pipeline, via the Galilee Basin, to the largest gas markets on the east coast.
Jemena began work in July last year on a 622 km pipeline from Tennant Creek in the Northern Territory to Mount Isa in Queensland creating around 600 jobs.
They expect the first gas on that pipeline to flow later this year.