Central Petroleum, AGIG, and Macquarie sign MoU for AMGP pipeline

Central Petroleum, Australian Gas Infrastructure Group (AGIG) and Macquarie Group have signed a memorandum of understanding (MoU) to progress towards a final investment decision (FID) for the development of the Amadeus to Moomba gas pipeline (AMGP) project.

Located in Australia, the project is planned to be a 950km-long 16in gas transmission pipeline.

It will provide direct access from the Amadeus Basin in the Northern Territory (NT) to the Moomba gas supply hub located in South Australia.

The partners in the AMGP project are expected to take an FID in the second half of next year.

This would enable the partners to begin construction on the gas pipeline in 2022, while the first gas from the pipeline is targeted for the first quarter of 2024.

According to Central Petroleum, the proposed gas pipeline is designed to have a free-flow capacity of 124 terajoules (TJ) per day or 45 petajoules (PJ) per annum.

Central Petroleum CEO and managing director Leon Devaney said: “The AMGP is strongly aligned with various initiatives to boost east coast gas supply as traditional supplies from Bass Strait and the Cooper Basin decline.

“What makes the AMGP stand out above other potential east coast supply proposals is the pipeline efficiently connects significant known conventional gas reserves from proven producing fields to east coast demand centres from 2024, which is forecast to have gas supply shortages.

“The initiative should also stimulate new gas development from the NT’s large and diverse array of prospective gas resources.”

In March 2018, Central Petroleum and its partner Macquarie Group received approval to proceed with the development of the Mereenie gas project in Australia.