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The Queensland Hunter Gas Pipeline is a critical energy infrastructure project that will deliver competitively priced gas to eastern Australia to meet growing demand for gas and improve security of supply.

Key Facts

  • The Queensland Hunter Gas Pipeline is a critical energy infrastructure project that will deliver competitively priced gas to eastern Australia to meet growing demand for gas and improve security of supply.
  • The pipeline will be 831km long, running between the Wallumbilla Gas Hub in Queensland and Newcastle in NSW.
  • The project is a Hunter Gas Pipeline Pty Ltd initiative, a private company.
  • The estimated cost of the project is $900 million.
  • Pipeline license 124 has been granted for the Queensland section of the pipeline and the NSW State Government has granted approval under Part 3A Critical Infrastructure.  Federal approval (EPBA ACT) was granted in December 2008.

Benefits
Economic benefits include:

  • Completing the crucial missing link in the east coast gas network by providing a third gas pipeline into NSW
  • Improving security of gas supply by diversifying supply sources.
  • Providing access to expanding gas reserves located in southeast Queensland and northern NSW.
  • Stimulating exploration and development of prospective gas reserves in northern and central NSW.
  • Make possible the commercialisation of the Gunnedah gas field – estimated at 40,000PJs
  • Significant royalty revenue to the Government as gas reserves are developed.
  • Potential for development of a new liquid natural gas (LNG) plant in the Hunter region generating more than 3000 construction jobs, 200 permanent jobs and several billion dollars in exports per annum.
  • Pipe could potentially be manufactured in Australia and bulk materials purchased locally.
  • Increased gas capacities and lower fuel costs into NSW as existing Moomba and EPG pipeline capacities are near capacity.
  • NSW Transmission Tariffs have tripled in last half of 2008 due to capacity constraints with existing pipelines. The QHGP will provide much needed new gas pipeline capacity and reduce cost pressures on tariffs.

Environmental benefits include:

  • Facilitating the development of gas power plants for base load power along the route of the pipeline.
  • Reducing greenhouse gas emissions as gas fired power stations produce around 60% less CO2 emissions and use 95% less water than coal fired power stations.
  • Pipeline will be underground and its design and construction methodology has been developed to minimise environmental and cultural impacts.

Social benefits include:

  • Economic development in the Hunter and regional NSW through the provision of a new gas supply.
  • Greater security of gas supply to Hunter and Sydney.
  • Employment and economic benefits associated with construction.
 
 
 
 
Queensland Hunter Gas Pipeline