Two rounds of the Department for Energy and Mining (DEM) PACE Gas grants totalling $47.8 million were paid to companies in 2016-17 and 2017-18 for nine projects. See Gas Incentivisation - PACE Gas Grants for more information. A key outcome of the projects is to deliver gas from fields located nearest to South Australian markets, to increase supply-side competition and reduce transport costs.
One of the successful PACE Gas grant projects is Beach Energy’s Haselgrove 3 well which has discovered a very significant new Otway Basin gas field (Haselgrove Deep). Additionally, PACE Gas grants were awarded to underpin exploration wells at the Beach Energy’s and Cooper Energy’s Dombey-1, and Vintage Energy and Rawson’s Nangwarry 1 locations.
Forecast potential gas production from this new discovery has been estimated as 10 TJ/day for a low-side scenario producing from just one well in the Haselgrove Deep gas field, to a high-side scenario of 50+ TJ/day from up to three fields, if all the PACE Gas grant supported exploration wells are successful. The low-side production forecast entails processing gas from a new, Beach Energy operated gas plant under construction at the site of the pre-existing Katnook gas processing plant.
On this basis, DEM’s Energy Resources Division identified a need for coordination between future gas producers and pipeline operators of existing pipeline infrastructure to consider how to most cost effectively deliver the gas to markets. DEM’s Energy Resources Division engaged GPA Engineering to provide an independent review of the existing gas pipeline infrastructure in the region, and provide advice on options for augmentation of this network to enable supply of gas from the region to local south east and other South Australian customers.
|South Australian South East Region Gas Transmission Options Study|
|Download the South Australian South East Region Gas Transmission Options Study (PDF 3MB)|