The Minns Labor Government is supporting a more stable gas supply for NSW by backing the repurposing of an existing pipeline to transport gas from South Australia to the east coast of NSW.
The NSW Government has given APA Group the green light to convert its Moomba to Sydney Ethane Pipeline, adding stability to the gas network by making better use of existing infrastructure.
The approved licence variation allows for the conversion and unlocks the opportunity to deliver an extra 20-25 terajoules of gas per day, which is equal to the annual gas use of about 1,300 NSW homes.
This switch helps ensure a more reliable gas supply to meet existing needs, as the state increases renewable energy generation to replace ageing coal-fired power stations.
The 1,200km high-pressure pipeline has sat idle since 2023 when the previous single customer of the pipeline ceased operations.
APA Group proposed to repurpose the pipeline as part of its East Coast Gas Grid expansion program, a five-year initiative aimed at enhancing the transmission and storage capacity of natural gas across the east coast.
The decision to approve the licence variation followed a rigorous review of the safety, environmental and technical considerations involved in the project.
Gas from the repurposed pipeline is expected to be flowing by the end of the year, to help reduce the supply gap emerging across the east coast.
Quote attributable to Minister for Climate Change and Energy, Penny Sharpe:
"This decision demonstrates the Minns Labor Government's commitment to maintaining a reliable supply of gas while we transition to a cleaner, more sustainable energy system.
"The plan to repurpose the pipeline is a short-term measure that will boost gas supply to the east coast and complements the other work we are doing to manage supply risks and price issues."
