He said the new agreement with IPL would see the manufacturer have access to 32TJ of additional gas per day from the planned launch of the NGP commercial in December 2018 until December 31, 2019, with an option for renewal. The new agreements carry at least 32 TJ of gas per day. Yemen`s agreement with IPL complements the agreement reached with the Northern Territory Power and Water Corporation in 2015 to deliver 31TJ of gas for 10 years to IPL`s Phosphate Hill facility. “We believe that we have secured the best site in Australia for this project and now, with a long-term life agreement for the site and a secure pipeline contract, PKGT remains the only project in the eastern states capable of helping the NSW government overcome the projected gas shortage by 2024” Johnston said. Yemen chief executive Antoon Boey said gas from the new deal would supply IIPL`s Gibson Island plant in Queensland. Yemen has announced a new gas transport contract with northern Gas Pipeline`s (NGP) IPL De Gas, which costs $800 million. Construction of the NGP will be monitored as planned, with the first gas expected at the end of this year. In the moU, the $250 million Port Kembla Gas Terminal (PKGT) is connected to the IEA`s Oriental Pipeline (EGP), with Yemen expected to invest $70 million in project work, including the construction of the 12 km long underground pipeline for the secure transfer of gas from the LNG import terminal directly to the PIP. “This is a decisive step in the implementation of our liaison plans between the PNV and the IEA gas terminal in Port Kembla,” said Tudor. “These plans will allow us to move gas flexibly between densely populated areas such as Sydney and Melbourne, depending on the demand and dynamism of the gas market.” “Discussions with other parties are also well advanced and we remain confident that the NGP will be fully completed by the end of the year,” Boey said. Squadron Energy CEO Stuart Johnston said under the new MoU that Yemen would provide a delivery capacity of 522 TJ of gas per day, bringing PKGT closer to the critical gas supply security guarantee for NSW. “This gas gives the IPL much-needed and positive security for the people who rely on the Gibson Island plant, who will benefit not only from jobs that depend on gas as a direct raw material, but also from the impact of a vibrant local economy and industry.” “The project also gives us additional impetus to advance our UNEP change projects to make it two-way. Yemen will also amend the EGP to deliver more than 200 TJ of gas from New South Wales to Victoria, while it is capable of delivering 450 TJ of gas per day to NSW – 25 per cent more than its current capacity.
“We have had a fantastic relationship with IPL and are delighted that this additional gas supports IPL`s operation on Gibson Island, which employs more than 400 people in normal operation and up to 800 people during rush hour.” The new partnership means that Yemen has reduced its volume to 70 per cent of the total available capacity in the first year of its operations. IEA – part of the Squadron Energy Group – recently announced that it had signed a gas terminal lease agreement with NSW Ports that enabled the construction of the PKGT. Frank Tudor, Yemen`s chief executive, said the MoU with IEA underscored Yemen`s commitment to providing affordable gas to NSW and Victoria. “This announcement reinforces the leading role that the territory`s gas industry can play in creating and maintaining jobs in northern Australia,” Said Mr Boey.
