The company contracted to build a $264 million pipeline from Killingworth to the Hunter Power Project at Kurri Kurri says it can still meet its late 2024 deadline even though construction is yet to begin.
APA Group recently advised the Federal Government that it had experienced difficulties procuring materials from overseas for the 21 kilometre project that will connect the power plant to the Sydney to Newcastle gas pipeline.
"The procurement and management process has been ongoing for the past 12 months and has been a challenging process with significant impacts resulting from COVID 19, supply chain restrictions with steel and logistical challenges with the availability of shipping for international transportation," APA said in a project variation proposal sent to the Department of Climate Change, Energy in March.
An APA spokeswoman confirmed on Monday that the pipe shipment had arrived.
A pipeline licence is expected to be issued in the next two weeks with major construction to begin in the near future.
It is estimated about 400 people will be employed during the pipeline's construction.
The beleaguered Hunter Power Project was initially due to begin operating in the first summer following the closure of Liddell Power Station.
But a litany of problems including cost blow-outs, supply chain problems, and bad weather mean it will not be fully operational until December 2024.
APA, which has signed a 30 year agreement for the transport and storage of gas to the plant, said the gas pipeline was on track to be delivered in time for the completion of the power plant.
APA is also building an associated 70 terajoule gas storage facility in addition to the pipeline.
While the Hunter Power Project will primarily run on gas, it will have a diesel backup.
A 2021 Environmental Impact Statement for the project noted that there could be "up to six months of diesel-only operation during 2023 before the natural gas supply to the proposal site is completed."
Snowy is also striving to meet a government goal of introducing 30 per cent green hydrogen into the plant's fuel mix as soon as possible.
Snowy Hydro's chief executive Dennis Barnes told Senate Estimates hearing in February that Snowy Hydro was still working on a business case for the green hydrogen component. The business case is due to go to the government before the 2024 federal budget.
The lateral pipeline will not be capable of holding hydrogen.
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