Jemena completes construction of Northern Gas Pipeline in Australia

Jemena has completed construction of the A$800m ($578.23m) Northern Gas Pipeline (NGP), which will carry gas from the Northern Territory fields to Mount Isa in North West Queensland, Australia.

The 622km-pipeline will cater to gas needs of local businesses, as well as mining and other commercial operations.

It is initially expected to deliver around 90 terajoules (TJ) per day of gas, with scope for further expansion.

Jemena managing director Frank Tudor said: “We know that the Northern Territory has enough gas to meet Australia’s future supply needs for the next 200 years or more.

“Our pipeline is the crucial missing link that will connect this gas with Australian homes and businesses.

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

The company expects to begin commercial operations between 29 December and 10 January.

Jemena is exploring the expansion of the NGP for further integration with the Australian East Coast gas market.

Australian Petroleum Production and Exploration Association (APPEA) chief executive Malcolm Roberts said: “The pipeline connection between the Northern 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.”

According to Jemena, 80% of the pipeline has been contracted. In September, the company signed a gas transportation contract with Santos.

Construction of the NGP is expected to provide some relief to the Australian East Coast, which is expected to face a gas shortage in 2022.

Earlier this week, ExxonMobil made a final investment decision to go ahead with the development of the West Barracouta gasfield in Bass Strait, offshore Victoria. Production from the field is anticipated to commence in 2021 and intends to boost domestic gas supply.