Scheduled for completion in January 2009, the 115km pipeline will link QGC’s coal seam methane fields with Wallumbilla.
The two companies said the ‘Berwyndale-to-Wallumbilla’ 400mm high-pressure pipeline would be constructed to run from a point about 8.5km east of the township of Miles adjacent to the Condamine power station, which QGC is constructing, to the Wallumbilla gas hub.
QGC managing director Richard Cottee said the deal was a major commitment in developing a significant piece of gas transportation infrastructure for both businesses.
“This pipeline, combined with the Ballera to Moomba pipeline interconnect currently being completed by EPIC and AGL, will allow for the efficient northern and southern distribution of up to 740 petajoules of gas purchased by AGL under a long-term gas sales agreement with QGC in March 2007,” Cottee said.
“From QGC’s perspective, it alleviates what has been a major constraint in Queensland’s gas transportation network and supports additional gas marketing opportunities for QGC.”
AGL managing director Michael Fraser said the BWP would provide the optimum long-term commercial outcome for his company to transport gas from QGC to access western Queensland and southern markets.
“The BWP will provide a long-term gas transportation solution for AGL to support the QGC contract over the period 2009 to 2027, and will also provide AGL with significant flexibility and options over future capacity, including access to gas parking and gas lending services,” he said.
Under contract, AGL assumes full responsibility for the development of the project (PPLA 123) and commits to develop the pipeline by the beginning of 2009.
QGC will have an option to buy back into the pipeline, following which the pipeline would be owned equally by QGC and AGL under a 50:50 joint venture.
