Jemena commences construction of $800m Northern gas pipeline

Energy infrastructure company Jemena has started construction on its $800m Northern gas pipeline project in the Northern Territory, Australia.

Aimed at providing market access and improving energy security, the gas pipeline will connect the Northern Territory to the Eastern gas pipeline grid.

The 622km pipeline will extend from Tennant Creek in the Northern Territory to Mt Isa, Queensland, and is expected to resolve the east-coast gas supply crisis.

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.

“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.”

Based on modelling, the company identified that the pipeline can be expanded to transport up to, or beyond, 700TJs of gas per day.

Additionally, the pipeline is expected to benefit the southern states such as New South Wales, Victoria and South Australia.

The construction contract for a 481km section of the pipeline across the Territory and into part of Queensland has been awarded to McConnell Dowell, while the remaining 141km will be built by Spiecapag Australia.

The pipeline is expected to provide employment to 900 workers during the construction phase.

According to Jemena, construction of around half of the Territory section of pipeline and most of the Queensland section will be completed this year, while the remaining portion is scheduled to be built next year.

It is targeting first gas flow from the pipeline in the later stages of next year.