Australia’s east coast gas market will be supplied by additional 300 terajoules of gas per day following the opening of the Reedy Creek pipeline.
The 50-kilometer gas transmission corridor connects APA’s Wallumbilla facility and the Australia Pacific LNG facility at Reedy Creek, connecting APLNG pipelines to the east coast grid, a statement by the office of Queensland’s minister for trade, Annastacia Palaszczuk reads.
APLNG is the foundation customer for the pipeline, having signed a 20-year gas transportation agreement with APA Group, the company said in a separate statement.
Warwick King , APLNG’s chief executive, said the new pipeline would enable the project to move more natural gas into the east coast market.
Commenting at the official opening of the pipeline, Palaszczuk said the A$80 million pipeline investment will enable the delivery of more gas to businesses in Queensland, Victoria and New South Wales.
Queensland government is pushing the development of its gas resources and has earmarked a further 44,000 square kilometers of land for resource exploration.
Palaszczuk added that Queensland is investing A$1.16 billion to support three Queensland projects in generating additional gas into the domestic market by 2020.