Infrastructure giant Jemena has announced the successful conversion of its Eastern Gas Pipeline into a bi-directional system, a move designed to shore up energy reliability across Australia’s southeastern states.

The upgrade to the 797-kilometer (495-mile) pipeline allows it to transport 200 terajoules per day (TJ/d) of new gas south from Port Kembla into southeastern New South Wales and Victoria. 

This new capacity complements the pipeline’s existing ability to push 350 TJ/d north into the NSW market, creating a flexible energy link between the regions.

The project serves as a cornerstone of Jemena’s Southern Gas Strategy, which aims to mitigate projected gas shortages in southern Australia. 

By modifying existing infrastructure rather than commissioning new transcontinental projects, the company claims it can deliver energy faster and at a lower cost to consumers.

"By enhancing existing infrastructure, we’re able to bring additional capacity to market before shortages materialize," said David Gillespie, Jemena’s managing director. 

"This approach avoids consumers paying for multi-billion-dollar projects that face protracted development timelines and significant risks."

The company is now pivoting to the next phase of its strategy: making the compressor station at Wilton bi-directional. 

Once complete, this will establish a seamless pathway for gas sourced from northern Australian fields to reach high-demand centers in the south. 

Jemena expects the Wilton facility to be operational within two years, pending favorable regulatory and market conditions.

The strategy is supported by independent modeling from Rystad Energy, which suggests that regasification terminals can provide price-competitive gas to NSW and Victoria when compared to the costs of building new cross-country pipelines.

Gillespie noted that the diversification of supply routes is essential for national stability.

"Having multiple pathways for gas to reach our large domestic markets helps reinforce Australia’s energy security as well as our ability to respond to shortages or other interruption events," he said.

Following the completion of the Wilton upgrades, Jemena plans to evaluate further expansions of the Eastern Gas Pipeline to meet shifting market demands.