Contract awarded for West-East Gas Pipeline study

ACIL Allen, along with GHD, has been awarded a contract by the Australian Government to undertake a pre-feasibility study on the West-East Gas Pipeline.

The study, which was previously announced in this year’s budget, marks the government’s first investigation to evaluate the potential of constructing a gas pipeline to connect Western Australia with the east coast gas market.

The findings from the study are expected to lead to a full feasibility study to assess the viability of constructing a natural gas pipeline to increase gas supplies and competition in the east coast gas market.

Federal Minister for the Environment and Energy Josh Frydenberg said: “The government is powering forward with a plan that will deliver an affordable, reliable and responsible energy system, which will also help meet our international obligations.

“Improving the transparency, competitiveness and long-term security of Australia’s east coast gas market is a priority for the government as gas is a crucial component of the current and future energy mix to ensure we keep the lights on.”

Under the contract, ACIL Allen is expected to handle the market and analysis component of the study, while GHD will be responsible to undertake an assessment of the pipeline engineering and route.

ACIL Allen is focused on energy policy, market trends and project economics in Australia.

GHD specialises in providing technical advice in the fields of engineering, architecture and environmental modelling.

The pre-feasibility report is scheduled to be completed in March next year.

Last month, construction of the 622km, A$800m ($639.37m) interstate Northern gas pipeline linking Tennant Creek in the Northern Territory to Mount Isa began, with first gas set to flow next year.