Australia’s Jemena targets increased biogas output

: Natural gas
23/11/30

Australian gas pipeline and power distributor Jemena has signed an initial agreement to explore expanding the use of biogas in its network, citing the need to find lower emissions options for users unable to electrify their businesses.

Jemena will partner with Australian firm Optimal Renewable Gas (ORG) to identify sites in New South Wales (NSW) state near agricultural and other waste sources that could produce up to 1.5PJ (40mn m³), in preparation for building three biomethane plants. ORG is aiming to have 10 grid-scale plants in production or under development nationally by 2030.

"We have started assessing projects in NSW to produce biomethane to inject into the gas network. Based on our work to date, we could potentially be looking at somewhere closer to 2-4 PJ/yr," ORG's managing director Mike Davis said on 30 November.

Jemena, which is 60pc owned by Chinese state-owned utility State Grid Corporation of China and 40pc by state-controlled utility Singapore Power, will also carry out feasibility work to blend biomethane into the NSW gas distribution network. It has commissioned research that identified biomethane sources including agricultural waste, wastewater and landfills near its NSW network that could produce up to 30 PJ/yr, or 60pc of the 49.6PJ Jemena's 386 industrial costumers used last year.

Jemena's Malabar biomethane injection plant in Sydney, which opened in June, is injecting 95 TJ/yr (2.5mn m³/yr) of renewable gas sourced from wastewater into the NSW grid, which the firm owns. Malabar has an offtake agreement with Australian utility Origin Energy to purchase all biomethane produced during the first 18 months of operation, supported by a A$5.9mn ($3.9mn) grant from the Australian Renewable Energy Agency.

Biofuels have long failed to compete with fossil fuels in Australia's energy market, although new emissions rules and corporate targets could boost interest in the sector.

A 2021 government report found bioenergy could account for around a third of Australia's industrial heat market, provide more than a fifth of the feedstock in its gas pipeline network and create a sustainable aviation fuel market.

But critics of the gas sector have labelled biogas too costly and lengthy to develop for residential and most commercial users.

A ban on new residential gas connections begins in the Australian Capital Territory on 8 December. Victoria state's similar ban begins on 1 January next year but other states have declined to follow suit.

By Tom Major

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Energy security fears drive diversification spend: IEA

26/05/28

Energy security fears drive diversification spend: IEA

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Iran, US dispute status of Hormuz in draft deal: Update

26/05/27

Iran, US dispute status of Hormuz in draft deal: Update

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CEE gas stocks to reach 70pc by 1 Nov amid deficit

26/05/27

CEE gas stocks to reach 70pc by 1 Nov amid deficit

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Iran-US deal draft contains Hormuz pledge: State TV

26/05/27

Iran-US deal draft contains Hormuz pledge: State TV

London, 27 May (Argus) — A draft agreement to end the war between the US and Iran includes a pledge from Tehran to return the number of commercial ships passing the strait of Hormuz to pre-war levels within a month, Iranian state television reported today. Crude futures fell sharply after the report, with front-month Ice Brent approaching $94/bl, the lowest intraday level since 21 April. Prices subsequently regained some ground, with Ice Brent down by around 4pc as of 13:45 GMT. Broadcaster IRIB said it had seen a "first draft" of a 14-point agreement that said "managing the passage of ships… and receiving fees for services remains at the discretion of [Iran], which will work in co-operation with Oman". In return, IRIB said the US has pledged to lift the maritime blockade on Iran, and has agreed to "make a commitment" on the issue of its military presence in countries neighbouring Iran. Details of the latter agreement are unclear. None of this has been confirmed by the governments in Tehran or Washington, although US president Donald Trump on 23 May said an agreement with Iran to reopen the strait of Hormuz has been "largely negotiated". Today's IRIB report contains no mention of agreement on other key issues, like Iran's nuclear programme, or on the repatriation of funds to Tehran. By Nader Itayim and Ben Winkley Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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