Australia awards 623km gas pipeline contract
Australia’s Northern Territory (NT) government has awarded the contract for a 623km pipeline which will connect the area’s vast gas fields to the east coast market.
Jemena has been awarded the competitive tender process for the North East Gas Interconnector (NEGI), which will link Tennant Creek in the Northern Territory to Mt Isa in Queensland and cost about AU$800m (£373m) to construct.
Managing director Paul Adams said the pipeline would fast-track development of the NT’s gas industry, with gas expected to flow to east coast markets from 2018.
“Building the NEGI will drive commercial exploration and development of currently untapped gas reserves, unlocking the next phase of economic growth for the Territory and helping build a stronger Northern Australia,” he said. “The pipeline is cost-effective and relatively quick to build, so it will support a strong gas industry for the Territory by getting gas to market at a competitive price, accelerating development of NT gas fields and helping create jobs and opportunities in the gas industry.”
Adams said that routing the pipeline to Mt Isa was the most efficient way to get gas to the east coast, as it reduced potential construction risks and required lower volumes of gas than other routes to make it viable.
During the planning, construction, and commissioning phases, Jemena will create up to 600 jobs for locals and offer up to 100 contracts for local businesses, worth around AU$112m. It also expects to staff ongoing operations and maintenance teams at both Tennant Creek and Mount Isa from local workforces.
Construction of the NEGI is expected to be completed by 2018. Once completed, it will be known as the Northern Gas Pipeline (NGP).