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Northern Territory opens A$800m gas pipeline

Northern Territory opens A$800m gas pipeline

Photo by Bloomberg

14th December 2018

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – The Australian Petroleum Production and Exploration Association (Appea) has welcomed the opening of the Northern gas pipeline between Tennant Creek, in the Northern Territory, and Mt Isa, in Queensland.

Infrastructure developer Jemena has completed the construction of the A$800-million, 622 km pipeline that will transport gas from the Northern Territory fields to Mt Isa, with the gas feeding a number of mining and commercial operations in Queensland’s north-west.

Jemena MD Frank Tudor noted on Friday that some 80% of the Northern gas pipeline’s capacity has been contracted, which was a testament to the need for additional gas across Australia’s east coast.

“We know that the Northern Territory has enough gas to meet Australia’s future supply needs for the next 200 years or more, and our pipeline is the crucial, missing, link that will connect this gas with Australian homes and businesses,” Tudor said.

“Provided gas is proven as commercially viable in the Northern Territory, Jemena will be able to increase the Northern gas pipeline’s capacity from around 90 TJ/d up to 700 TJ/d. To put this in context, this is enough gas to meet the average daily gas needs of Sydney, Brisbane, and Adelaide combined,” Tudor said.

“The foundations we’ve laid in the Territory mean we will be able to complete this work at an expedited schedule while creating around 4 000 jobs and investing approximately A$3-billion to A$4-billion.

“This investment is the answer to Australia’s future gas needs.”

Northern Territory Minister for Primary Industry and Resources, Ken Vowles, said that the completion of the construction of the Northern gas pipeline shows territory workers and businesses could deliver on major gas projects, and the Northern Territory government can work through the necessary permit processes complex projects such as this require.

“It also means the Territory is contributing to national energy security, which is in the Northern Territory government’s five point Gas Strategy.

“Importantly, the construction of the Northern gas pipeline has boosted investment and development in the Tennant Creek region, with many local contractors and workers benefiting.”

Appea CEO Malcolm Roberts said the pipeline meant northern Australia’s abundant gas resources will for the first time be able to be delivered to the gas markets of eastern Australia.

“The new pipeline is another example of the measures the broader gas industry is taking to meet the needs of Australia’s homes and businesses, which rely on sustained natural gas supply,” Roberts said.

“The pipeline connection between the Territory and Queensland means gas resources from the Timor Sea and onshore gasfields in the Beetaloo basin and Central Australia will be able to be delivered to customers from Adelaide to Brisbane, as well as regional areas such as regional Queensland which are significant users of gas.”

Roberts said that the pipeline would further facilitate the development of additional shale and conventional gas resources in the Territory, where gas producers were hoping to resume exploration activity after the lifting of the government’s moratorium on hydraulic fracturing earlier this year.

The resumption of the activity is contingent on the Northern Territory government completing proposed updates to its regulatory framework to enable necessary environmental approvals to be processed.

“Appea’s member companies stand ready to invest billions of dollars in new projects in the Territory. The new pipeline connection to Australia’s largest gas markets will help make that happen,” Roberts said.

Commercial operations at the Northern gas pipeline are set to start between December 29 and January 10.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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