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Gladstone demand draws gas from NSW


Source: The Australian, 9 Feb 2016

Victorian natural gas is being piped to Queensland through NSW and the central Australian Moomba gas hub for the first time, as $70 billion of LNG export plants in Gladstone start to suck in gas from as far away as Bass Strait.

The effective export of Bass Strait gas indicates a further tightening of the east coast gas markets and is evidence that Queensland’s coal-seam gas fields and the Cooper Basin gas fields in central Australia are not providing enough early gas for the LNG projects.

Gas flows on the Moomba-to-Sydney gas pipeline, which has supplied NSW with gas since 1976, reversed in December for the first time, as the third of three gas export projects being built at Gladstone powered up, according to data from the Australian Energy Market Operator.

And with the projects far from full capacity (the Santos-operated Gladstone LNG plant and the Origin/ConocoPhillips-operated Australia Pacific LNG project still need to ramp up), domestic gas users are worried there will be more export demand on southern gas.