Hunter Energy told the Sydney Morning Herald that the Hunter region had the highest gas prices, whereas south-east Queensland gas was very cheap. Gas supplied by the mooted pipeline could be cheaper by 20% or more, the company said.
Macquarie Generation plans to bring a 500 megawatt Hunter Valley gas plant online by early 2007. Another electricity generator, Delta Electricity, is also considering a gas-fired plant but is not willing to make a firm commitment because of the high price of gas in the Hunter.
The pipeline would run from Wallumbilla, near Roma, Queensland to Newcastle, Hunter Energy said.
Recently Queensland coalbed methane explorer, Comet Ridge, told EnergyReview.net that a pipeline running from Wallumbilla to the Hunter Valley the eastern states gas grid and would only be 724km long.
"Queensland gas prices are very competitive on a worldwide scale,” Comet Ridge managing director Andy Lydyard said.
“The state has vast amounts of cheap energy and would have to be very competitive for any energy-intensive industry. Greater availability of inexpensive gas could make a big difference to industry and employment in Newcastle and the Hunter Valley."
But such a pipeline would not only connect Queensland’s vast coalbed methane reserves with the energy-hungry industrial region around Newcastle, it would also run through many NSW permits that were prospective for CBM and conventional gas, encouraging further development of NSW gas resources.
Gas explorer Eastern Star Gas has been developing gas reserves near Narrabri, NSW and has said it could develop sufficient reserves to supply large users in the Newcastle area.
