At a sod-turning ceremony near Tennant Creek, Jemena has announced that construction is officially underway on the $800 million Northern Gas Pipeline Project.
Jemena Managing Director Paul Adams said the Northern Gas Pipeline will play a crucial role in helping to resolve the east-coast gas supply crisis.
“This project is a boon for businesses that rely on gas as either a feedstock or fuel source by providing them with access to new gas at a cheaper price, particularly when compared to the costs associated with transporting gas over long distances from the Moomba Gas Hub to Queensland and New South Wales,” said Adams.
Adams also stated that the company intends to expand the pipeline to reach more Australian customers.
“Jemena has already commenced investigative work on expanding the Northern Gas Pipeline and extending it south from Mt Isa to the Wallumbilla Gas Hub to further integrate Territory gas into the east-coast gas grid, provided additional gas supplies are made available in the Territory. Our modeling suggests that the pipeline can be relatively easily expanded and extended to transport up to, or beyond, 700 TJs of gas per day. This far exceeds gas used on an average day in the New South Wales and Queensland markets.“The pipeline will also benefit Australian households and businesses in the southern states, as it will free up gas currently flowing north to supply LNG plants in Queensland, making this gas available for use in New South Wales, Victoria, and South Australia.”
The Northern Gas Pipeline will span 622 kilometers from near Tennant Creek, in the Northern Territory, to Mt Isa in Queensland. Approximately half of the Territory section of pipeline and most of the Queensland section of pipeline will be constructed this year with the remaining pipeline to be constructed in 2018.
Jemena has awarded a contract to McConnell Dowell to construct a 481 kilometer section of the pipeline across the Territory and into part of Queensland. The remaining 141 kilometers of pipeline in Queensland will be constructed by Spiecapag Australia.
First gas on the Northern Gas Pipeline is expected to flow in late 2018.