Gas power station announced

Hunter Valley News
Wednesday 28/5/2008 Page: 3

THE gas pipeline from Queensland to Newcastle, which will run through Murrurundi, Scone, Muswellbrook and Singleton,has taken a leap forward. The missing link in the east Australian gas network will be built after an agreement was reached for Queensland Hunter Gas Pipeline (QHGP) to transport gas for a proposed major new gas fired power station in NSW. QHGP managing director Garbis Simonian said the pipeline will transport 50 petajoules of gas a year for 20 years for the 400 to 600 megawatt power station, proposed by Queensland Gas Company, ANZ Infrastructure Services Ltd and Toyota Tsusho Corporation.

"This is approximately one-third of the pipeline's ultimate capacity," Mr Simonian said. The privately-funded QHGP will transport coal seam gas collected in the southern central Queensland fields to Newcastle, through an 820km underground natural gas pipeline. It will be the third major gas supply into NSW. "The $850 million QHGP will provide greater security of gas supply to NSW and deliver gas to some areas where it has not been available," Mr Simonian said. "The pipeline will provide additional gas supplies to the Newcastle and Hunter Valley region, helping to create more competitive pricing and choice for consumers in the NSW energy market.

"It will also limit the possibility of gas curtailment during weather extremes in NSW or when systems fail in the existing supply routes." The company said new power station development would supply electricity to between 320,000 and 500,000 homes and provide major environmental benefits, including producing fewer greenhouse gases and using 90 per cent less water than existing coal-fired power stations in NSW. The location of the new power station is the subject of further discussion between its proponents and government authorities.