Jemena, an Australian energy infrastructure company, has started construction on the 622km Northern Gas Pipeline (NGP) that will help to resolve the gas supply crisis in eastern Australia.
The pipeline, which will run from Tennant Creek in the Northern Territory to Mt Isa in the Gulf Country region of Queensland, will entail an investment of approximately AUD800m ($620.8m).
Jemena managing director Paul Adams said: “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.
“Our modelling 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.”
Plans are afoot to construct almost half of the Territory section of pipeline and most of the Queensland section of pipeline in 2017 with the remaining pipeline to be constructed next year.
Jemena has selected McConnell Dowell to build a 481km section of the pipeline across the Territory and into part of Queensland. The remaining 141km of pipeline in Queensland will be constructed by Spiecapag Australia.
First gas on the Northern Gas Pipeline is likely to flow in late 2018.