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West-east gas pipeline pre-feasibility study

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PRESS RELEASE

The Turnbull Government is pleased to announce that ACIL Allen, in conjunction with GHD, is the successful tenderer to conduct a pre-feasibility study on the West-East Gas Pipeline.

Announced in this year’s Budget, the West-East Gas Pipeline pre-feasibility study is the first Commonwealth investigation of the potential for constructing a gas pipeline from Western Australia to link up to the east coast gas market.

The findings from the study may inform a full feasibility study to test the viability of constructing a natural gas pipeline to provide additional gas supplies and increase competition in the east coast gas market.

ACIL Allen will be involved in the market and analysis component of the study, while GHD will take on the pipeline engineering and pipeline route assessment component.

Together, the parties have deep and wide ranging experience in gas markets and infrastructure and demonstrated through their bid the ability to deliver excellent analysis to inform future infrastructure decisions.

ACIL Allen is a leader in energy policy, market trends and project economics in Australia. GHD provide detailed technical advice in the fields of engineering, architecture and environmental modelling.

The Government is powering forward with a plan that will deliver an affordable, reliable and responsible energy system which will also help meet our international obligations.

Improving the transparency, competitiveness and long term security of Australia’s east coast gas market is a priority for the Government as gas is a crucial component of the current and future energy mix to ensure we keep the lights on.

ACIL Allen and GHD are due to provide the pre-feasibility report in March 2018.

For more information visit energy.gov.au/government-priorities/energy-markets/gas-markets.

   

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  • Onslow Road

    How about looking at the feasibility of a transnational HIgh Voltage DC line. This would be far more flexible than gas and not commit us to fracking on both sides of the continent.
    ?

    • suthnsun

      And help with east coast evening demand.

      • Steve Applin

        We don’t have a problem with a shortage of gas or electricity, and hooking up to the NEM will give us a problem with both. I see where the benefit is for the east coast, what exactly is the upside for WA?

        My concerns aside, I’ll repeat Mark McGowan’s offer when this was discussed a few months ago: no gas unless you fix our share of the GST.

        • Onslow Road

          Agree with that, I was suggesting electricity would be easier/more useful to send than gas (both ways) not that either was ideal.
          Another thing this implies is that we need extremely expensive infrastructure to support gas. This is therefore a subsidy or part of the cost of gas. Comparatively Renewable Energy is going to be far cheaper

        • suthnsun

          It is bi-directional, you get help with morning peak. The cost is assessed by comparing with batteries and other dispatchables for the relevant peak periods which pv solar cannot address directly. Gas is ethically untenable, regardless. If feasible, WA is in a position to gain sustainably for the foreseeable future.

    • Steve Applin

      There are about 1,600km between the eastern most point of the SWIS and the western most point of the NEM, a gap that would cost billions to bridge, not to mention the cost of upgrades between Kalgoorlie (eastern most point of the SWIS) and Perth, and it would take years to build.

      Why not sink those same billions into large scale solar and wind, which will both be delivering electricity within 12 months, rather than the many years such a link would take?

      The gas they are planning on linking up to is on the north west shelf, about 1,500km north of Perth and it’s all conventional, there is no fracking in WA. The reason we have the gas is that we’ve got a domestic gas reservation policy, we didn’t let the gas companies flog our gas off to the highest bidder without thinking through what would happen to our own supplies.

  • RobertO

    Hi All, A better option to consider may be to move all our Aluminium Smelter to WA and build ample RE to allow them operate with very cheap electricity to keep jobs in Australia. What ever we do, need to consider what is best for Australia and our enviroment (Paris Accord is part of this). Both Gas and Electrical interconnects are energy costs that might be better spent on local production given that in the USA there may be plans that rate the costs of your “Green Footprint” and how you may be excluided from that market place (see link)
    http://reneweconomy.com.au/buy-clean-wants-change-way-build-stuff-43308/