Mereenie JV stops gas supply to Aussie east coast due to pipeline outage

Central Petroleum reported on March 15 that the Mereenie joint venture, which operates the Mereenie gas field in Northern Territory (NT), will halt the supply of gas to the Australian east coast due to an outage at the Northern Gas Pipeline (NGP).

According to Central Petroleum, the joint venture received notification that the NGP, responsible for connecting Northern Territory gas to the east coast, is anticipated to remain closed until June 2024.

During this period of outage, gas delivery to east coast customers will be temporarily suspended. However, Central said its customers in the NT will continue to be unaffected, as has been the case during previous outages.

Presently, the Mereenie joint venture has decreased sales volumes by approximately 13.6 terajoules/day (3.4 terajoules/day net to Central). The joint venture is collaborating with key NT stakeholders and customers to redirect this gas supply to NT customers for the duration of the outage, Central said.

The Mereenie joint venture consists of Central Petroleum, Macquarie Mereenie, New Zealand Oil and Gas, and Cue Energy. Recently, Horizon Oil entered into an agreement with Macquarie Mereenie to acquire a 25% non-operated interest in the OL4 and OL5 development licenses, encompassing the Mereenie gas field.

The NGP, spanning 622 kilometers, serves as a critical gas transmission pipeline linking Tennant Creek in NT to Mount Isa in Queensland. It is owned and operated by the Australian gas infrastructure company Jemena.