Eastern Star Gas is in the process of investigating the feasibility of developing a liquefied natural gas (LNG) export base at Kooragang Island near Newcastle.

Gas will be supplied from gas reserves from the Narrabri Coal Seam Gas Project, first established eight years ago.

The proposed route covers an area of 295 kilometres from Narrabri to Coolah and then from Coolah to Newcastle via Bayswater Power Station.

The line is intersected at Coolah as the line from Narrabri flows on to Wellington where Eastern Star Gas provides gas to Wellington Gas Fired Power Station.

The proposed line to Newcastle would satisfy a request and Memorandum of Understanding with Hitachi Ltd and Toyo Engineering Corporation in supply of gas through the proposed Newcastle port.

The Narrabri Coal Seam Gas Project is a joint venture between Eastern Star Gas and Santos Limited.

Eastern Star Gas holds a 65 per cent interest in the Petroleum Exploration Licence 238 and Santos QNT Pty Ltd holds 35 per cent interest.

The gas pipeline approval process is expected to be completed by mid 2011.

An Eastern Star Gas spokesman said the company was seeking input from landholders and other organisations with an interest in the 100 metre wide study corridor to help further develop the pipeline alignment.

He said this required landholders’ permission to carry out low level, non-intrusive land studies on their properties in order to define the final route.

“This data, and local information provided by landholders, will help us to minimise the impact of the pipeline on farming and other activities,” he said.

Detailed information obtained from studies and investigations will be on display in early 2011 as part of an environmental assessment.