The following is not investment advice and readers should do their own research before making investment decisions which I have to admit is easier said than done.
Following the ASX announcement 17/10/17 headed Galilee Energy and Jemena fast-track pipeline Jemena and Origin have responded positively to the NT Government’s Decision to Lift the Moratorium on Fracking.
Whilst the NGP extension is has not yet reached FID (Final Investment Decision Stage), yesterday’s published announcements would seem to indicate that Galilee’s MOU with Jemena to build a pipeline to market are progressing well.
“Following today’s decision, Jemena intends to progress its plans to extend and expand the $800 million Northern Gas Pipeline (NGP). This work is expected to create around 4,000 jobs across northern Australia, with early estimates placing the cost of the project at around $3 - $4 billion.”
“Provided sufficient and appropriate gas is proven and will be available for transportation, our ambition is to commence preliminary works on the extension and expansion of the Northern Gas Pipeline in 2019.”
The recently released AEMO, VIC gas transmission planning report, foreshadowing an increase in the capacity of the APA South West Queensland Pipeline from Wallumbilla, starts to give an insight to the 5 year horizon for the gas industry.
Given Galilee’s encouraging drilling results on the Glenaras Gas Project - Drilling Update we now have fast tracked development of our tenement, a pipeline to market and every indication of a sustained shortage of gas to supply the East coast markets.
References:-
Katherine Times Article
“Origin today said it would resume Beetaloo exploration in NT as soon as practical.”
“The decision allowing exploration to proceed follows a 15-month independent scientific inquiry that found the risks identified with fracking could be mitigated or reduced to an acceptable level, and in some cases eliminated.”
AEMO Report
Extract…
If there are no other additional developments to increase gas supply in Victoria, there is a possibility that the two pipelines that transport gas south from Queensland – the South West Queensland Pipeline (SWQP) and the Moomba to Sydney Pipeline (MSP) – may not have sufficient transportation capacity to support Victorian demand in winter 2022.“Additional gas supply from Queensland cannot address the forecast Victorian gas supply shortfall unless additional pipelines are constructed”.
Best Regards
OGP
