Boosting Confidence in Gas Supply: Jemena Backs LNG as a Reliable Fix

As concerns rise over looming gas shortages in Australia, Jemena Managing Director David Gillespie says the energy sector must act now to secure supply – and that means embracing regasification terminals.

Gillespie's comments come after the release of Rystad Energy’s Competitiveness of LNG Imports report, which shows LNG regasification terminals offer a quick, cost-effective way to deliver new gas to market before the predicted supply crunch between 2028 and 2030.

The report compares LNG imports with onshore pipeline delivery and finds both options offer competitive pricing, ranging from $14 to $19 per gigajoule – aligning with current southern gas prices. However, unlike northern fields such as the Beetaloo or Bowen/Surat Basins, which may not scale commercially until the 2030s, LNG terminals can deliver immediate impact.

“Industry leaders keep telling us they’re worried about prices and supply. Regasification is a proven, near-term fix,” said Gillespie. “We can’t afford to wait.”

Jemena is partnering with Squadron Energy to develop the Port Kembla Energy Terminal (PKET), Australia’s first LNG regasification facility. Once complete, PKET will supply up to 500 terajoules of gas per day – enough to power all of New South Wales on a winter peak day, or half of Victoria’s demand.

“This is a major step toward creating a national gas market,” Gillespie said. “PKET will function like a virtual pipeline, receiving gas from multiple sources – local or overseas – depending on need and pricing.”

As part of its East Coast Gas Market Plan, Jemena is upgrading its 797km Eastern Gas Pipeline (EGP) to be bidirectional, allowing gas to flow both north and south. By winter 2026, it will be capable of delivering 200TJ/day of gas from PKET into Victoria, potentially increasing to 320TJ/day in the future.

To support this, construction firm Monadelphous has been appointed to upgrade compressor stations along the route, with commissioning targeted for early 2026.

Gillespie emphasized that a mix of infrastructure – both LNG terminals and pipelines – is key to meeting future demand. With PKET nearing completion and the EGP upgrades underway, Jemena is positioning itself to ensure Australians have access to reliable and affordable gas for years to come.

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